How the numbers work.
WHAT REVENUE COMES FROM
Consultation fees Procedures Diagnostics Medicines dispensed, where permitted Admissions, where applicable
WHO PAYS
Patients directly Health insurance schemes Employers and corporate arrangements Government schemes, where applicable
WHY THE PAYER MIX MATTERS
Direct payment arrives immediately; schemes pay later and dispute claims.
WHAT COSTS DOMINATE
Staff, particularly qualified clinical staff Premises Consumables and medicines Equipment and its maintenance Power
WHY POWER DESERVES ATTENTION HERE
Refrigerated items, equipment and continuity of care all depend on it.
WHAT DRIVES PROFITABILITY
Patient volume against capacity Utilisation of expensive equipment Collection rate Consumable control
WHY EQUIPMENT UTILISATION MATTERS
Diagnostic equipment is expensive and its cost per test depends entirely on volume.
WHAT TO CALCULATE
Cost per test or procedure, at your actual volume.
WHAT THAT REVEALS
Whether a service is viable at the volume you have.
WHAT TO ESTABLISH
Break-even patient numbers.
WHAT TO TRACK
Patients per day Revenue per patient Collection rate Cost per procedure
WHAT MOST PRACTICES DO NOT MEASURE
The last two.
WHY THEY MATTER MOST
They determine whether volume translates into money.
