Why your Annual Revenue per patient matters
Let’s get familiar
Your Annual Revenue per Patient is the total collections in the past year, or over the last 12 months, divided by the number of active patients you have. For example, $600,000 in collections / 1000 active patients = $600 per patient annually.
Why does this number matter?
Your Revenue per Patient helps you to understand what you are collecting and create your own benchmarks within your practice. You can then compare this number to national averages. The ADA has reported that the average patient spends more than $650 each year for dentistry. Once you know your number you can evaluate how well you are presenting treatment, collecting from patients & insurances, educating your patient base, etc. How do you compare to the national averages with your annual revenue per patient? Do you have room for improvement?
Revenue per Patient may also start to help you answer the question, are my fees too low? If you have any questions, please reply to this email or call us at 801-225-8474.