Find Patient Lifetime Value (PLV part 5)

In order to calculate patient lifetime value, you must first have your:

  1. Gross Profit per Appointment
  2. Patient Recall Rate
  3. 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 and gross profit per appointment. The product is your patient lifetime value.

This figure is a good representation of your revenue reality. It is based on your patients and data.

You should still calculate your patient acquisition cost to improve your marketing budgeting. Patient Lifetime Value is usually more important. That is because most smaller healthcare providers do not spend much on marketing relative to other cost centers.

Patient lifetime value may be the most important figure for you to know as an owner. That is, if you hope to grow your practice or business.

Have any questions or suggestions? Contact us at meddkit.com.

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