One of the metrics Nurse Practitioner business owners need to pay attention to has to do with the cost of business. In terms of your business or practice, you’ll want to know what it cost you to see a patient.
It is vital for you to know this information so you can assess the cost effectiveness of seeing patients under certain plans (you might find some insurers pay less than the cost of care), it helps you determine what is a fair cash rate, and helps you set your budget.
In order to figure your cost-per-patient you need to gather some data. You will need your monthly cost to operate your office. Once you have this information, you will divide this by the number of patients you are seeing each month.
Include in your monthly cost items such as: your lease/mortgage, all utilities including phone/fax/internet, service contracts such as cleaning, medical waste disposal, copier service and shredding services if you use them. Don’t forget medical supplies, office supplies, staff salaries and taxes and any benefits you are paying as well insurances, licenses, advertising, etc.
Figuring out your cost per patient is vital. You cannot make intelligent decisions about your operating cost nor can you adequately evaluate a proposed insurance contract.
Knowledge is not only power, it’s business survival.