Professional services
Medical Practice Treatment Revenue Calculator
Works revenue from a treatment or procedure line, where room and provider time is the real cost.
Result
Service lines rarely carry the same margin. Splitting them is the only way to see which part of the business is paying for the rest, which is frequently not the part that looks busiest.
Get a Free Business AuditHow the calculation works
Procedures per month times collected revenue each, less the cost of delivering them, giving contribution for the line. Procedures compete with visits for the same providers and rooms, so the honest comparison is contribution per hour of provider and room time rather than contribution per procedure, since a lucrative procedure that occupies a long block may earn less per hour than routine visits.
What moves the number
- Collected revenue per procedure after contractual adjustment.
- Provider and room time consumed.
- Consumables and equipment cost per procedure.
- Volume, which spreads any dedicated equipment cost.
Where this one goes wrong
Compare on contribution per hour of the constrained resource, not per procedure, because the constrained resource is provider and room time. A procedure paying several times a visit while occupying several times the time is not obviously better, and practices have expanded procedure lines that reduced total contribution. Where a line requires dedicated equipment, its cost per use depends on volume, so the case has to rest on demonstrable rather than hoped-for throughput.
Before you quote
- Compare contribution per hour, not per procedure.
- Include consumables and equipment cost per use.
- Base dedicated equipment on demonstrable volume.
Questions
About this calculator
Is a high-paying procedure always worth adding?
Not necessarily, because it competes with visits for the same providers and rooms. A procedure paying several times a visit while occupying several times the time may earn less per hour, and practices have expanded lines that reduced total contribution.
What is the right comparison?
Contribution per hour of provider and room time, since those are the constrained resources. Contribution per procedure ignores what the procedure displaces, and what it displaces is the thing that determines whether the practice is better off.
How should a new procedure line be justified?
On volume you can demonstrate from existing patients or referrals, since any dedicated equipment's cost per use depends entirely on throughput. A line justified on projected volume that does not materialise is the classic expensive addition.
The formula
revenue = visits x average value; gross profit = revenue x margin
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Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Visits per month. Enter your own figure; the page starts at 28.
- Average value ($). Enter your own figure; the page starts at $2,600.
- Gross margin on this work (%). Enter your own figure; the page starts at 58%.
- Share of total revenue (%). Used to show what the whole business turns over.
The result updates as you type, so you can try a figure, see what it does to visit revenue per month, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Visits per month | 28 |
| Average value | $2,600 |
| Gross margin on this work | 58% |
| Share of total revenue | 40% |
What comes out
| Result | Value |
|---|---|
| Visit revenue per month main result | $72,800 |
| Per year | $873,600 |
| Gross profit per year | $506,688 |
| Implied total business revenue | $2,184,000 |
The repair line brings in $873,600 a year and earns $506,688 of gross profit on it.
How sensitive the answer is
Holding everything else steady and changing only average value, this is what happens to visit revenue per month. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average value ($) | Visit revenue per month |
|---|---|
| $1,300 | $36,400 |
| $1,950 | $54,600 |
| $2,600 example above | $72,800 |
| $3,900 | $109,200 |
| $5,200 | $145,600 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Visits per month
- A number, between 0 and 10000, starting at 28.
- Average value ($)
- A money amount, starting at $2,600.
- Gross margin on this work (%)
- A percentage, between 0 and 95, starting at 58%.
- Share of total revenue (%)
- Used to show what the whole business turns over.
What the results tell you
| Result | What it is |
|---|---|
| Visit revenue per month | The headline result. A money figure. |
| Per year | A money figure. |
| Gross profit per year | A money figure. |
| Implied total business revenue | A money figure. |
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.