Telehealth Service Pricing Efficiency Calculator

Telehealth Service Pricing Efficiency Calculator

Stop guessing your ROI. Most people forget to factor in overhead, patient retention rates, and even the cost of marketing when they calculate the efficiency of their telehealth services. It's infuriating how many providers overlook these crucial elements. If you think a simple revenue versus cost calculation suffices, you're in for a rude awakening. This calculator takes the chaos out of the process, giving you a clear picture of where you stand in the market.

How to Use This Calculator

You’re not just entering numbers; you need to pull real data from your practice. Start with your average session fee. You can find this by reviewing your billing records over the last few months. Next, consider patient volume. How many patients did you see in your last quarter? Don't forget to include new patients and follow-ups, as both contribute to your revenue. Then, dive into your overhead costs. These include everything from software subscriptions to marketing expenses. If you don't have a handle on these figures, you’re flying blind.

The Formula

Your efficiency calculation is going to look something like this:

Efficiency = (Total Revenue - Total Costs) / Total Revenue

This simple equation gives you a percentage that reflects your pricing efficiency. You need to account for all the costs associated with delivering your telehealth services. If you're not, you're just setting yourself up for failure.

Variables Explained

Let's break down the inputs you need:

1. Average Session Fee: This is the amount you charge per telehealth visit. Look back at your billing for the average over a few months.
2. Number of Patients: Count all unique patients treated in the last quarter. This gives you a clearer picture than just total visits.
3. Total Operating Costs: Include everything—staff salaries, technology subscriptions, marketing costs, and any other overhead.
4. Patient Retention Rate: This percentage reflects how many patients return for follow-ups. It’s essential for understanding your long-term revenue potential.

Case Study

For example, a client in Texas was baffled by their declining revenue despite a growing patient list. After using this calculator, they discovered that their marketing expenses were eating up profits. They were seeing a surge in new patients but had a retention rate of only 40%. By tweaking their follow-up process and improving patient engagement, they not only boosted their retention rate to 70% but also saw a significant increase in efficiency. They went from barely breaking even to achieving a 30% profit margin.

The Math

It's straightforward once you have the figures: plug in your averages and calculate. If your average session fee is $100, you see 150 patients a month, and your total operating costs are $8,000, the equation looks like this:

Efficiency = ((150 * 100) - 8000) / (150 * 100)

That gives you a clear efficiency percentage that you can use to make informed decisions.

💡 Industry Pro Tip

Only a seasoned consultant would tell you this: always revisit your calculations quarterly. The telehealth landscape is changing rapidly. What works today may not work tomorrow. By staying on top of your numbers and adjusting your strategies accordingly, you’ll maintain a competitive edge.

FAQ

• What if my patient volume fluctuates? Keep averages over a few months to smooth out the highs and lows.
• How do I know my overhead costs? Track every expense related to your telehealth service; use accounting software for accuracy.
• Why is patient retention so critical? Retaining patients is often cheaper than acquiring new ones, directly impacting your bottom line.
• What if I don’t have enough data yet? Use industry benchmarks to estimate your figures until you gather your data.