In order to calculate patient lifetime value, you must first have your: Gross Profit per Appointment Patient Recall Rate Patient Lifespan (or Patient Churn Rate) Once you have these figures, finding Patient Lifetime Value is simple. The hard part is the pre-work. Patient Lifetime Value Formula Multiply your patient lifespan by your patient recall rate Read more about Find Patient Lifetime Value (PLV part 5)[…]
One thing is for sure. Patient churn rate is the hardest metric of patient lifetime value to accurately determine. What is patient churn rate and patient lifespan? Patient lifespan is the number of time periods (e.g. years) a patient sees you, on average. Patient churn rate is the percentage of patients that leave your practice Read more about Find Patient Churn Rate (PLV part 4)[…]
It is critical to know how long your patients stay with you for forecasting revenue. We will refer to this metric as your Patient Recall Time. Patient recall time influences patient lifetime value a lot. It allows you to better budget marketing expenses. Additionally, it can help you predict capacity and future staffing needs. EHRs Read more about Find Patient Recall Time and Rate (PLV part 3)[…]
The first step to find patient lifetime value is to find gross profit per appointment. That is, the amount of real money you make from each appointment. It is reduced by the direct costs you incur for each appointment. Why use Gross Profit instead of Gross Revenue or Net Profit? Healthcare providers may have a Read more about Find Gross Profit per Appointment (PLV part 2)[…]
What is Patient Lifetime Value, exactly? Simply put, it is an estimate of the total money you receive for services for a patient (or client) during their lifetime. The term is a bit off putting. How does “do no harm” align with viewing a patient in terms of dollars? It may not be as antithetical to Read more about What is Patient Lifetime Value? (PLV part 1)[…]
Face it. You’ve seen a rise of mergers in healthcare in the last decade. Insurers, hospitals and private practices have bought one another out at an alarming rate. Healthcare facilities serving at-need patients have closed. Prices have increased. Employee wages have dropped as systems converge. Providers are the least happy they have ever been. But, Read more about Healthcare consolidation costs consumers[…]
The COVID-19 outbreak has put tremendous stress on healthcare practices and their patients. Given the fears of exposure to the contagious virus, many healthcare providers are offering telehealth to their patients and clients. Some specialist practices have closed or reduced hours and are wondering what they should do now. Other primary care and multispecialty practices are Read more about What is telehealth, really? How do I get started?[…]
Healthcare is undergoing a revolution. The trend toward full-time-employment of providers has slowed since 2014. There are three general macro trends that are fostering a consolidation counter culture.