Chiropractic charge per patient session

[Guest guest]

Hi David & All,

 

David wrote:

> I am working at a chiropractic office. Please offer some suggestion

> about what I should charge per patient. Its mostly insuracne and PIP.

> My guess at the avreage rate of reimbursement in Seattle is $70 for

> insuracne and 110 for PIP. Please let me know what I should shoot for

> in the contract.

 

To decide patient session rate (PSR), try the following calculation:

 

In the calculation below:

AGI = desired Annual Gross Income, allowing for all overheads (secretarial +

other

salaries, rents, interest on practice loans, stationary, phones, heating,

electricity +

equipment costs, conference costs, annual subscriptions, etc) + tax.

 

H = hours worked per day

D = days worked / week

W = weeks worked / year

C = cases / h that you can handle

 

The equation is: PSR = AGI / [H * D * W] / C

 

1. Decide what is your target annual gross income (AGI $).

 

2. Calculate how many hours per year (Y) you will work (Y = H * D * W).

For example if you will work 6h/d, 4d/week, 46 weeks/year, Y = 6 * 4 * 46 = 1104

h/year.

 

3. From (1) and (2), calculate the gross income/h (GIH) needed to reach your

target annual

gross income (AGI $), as GIH = AGI / Y.

For example, if AGI = 160,000 $, then GIH = 160000 / 1104 = 145 $/h

 

4. Decide how many cases / h © you can handle.

 

If C = 2, then PSR = 145 / 2 =72.50 $ / patient session.

 

Double-check if you can organise your practice & patient scheduling to stream in

the

required number of patient visits (C * Y, viz 2208 / year above) to reach your

target AGI.

 

Double-check if the patient session rate (PSR = 72.50 $ in the example above)

compares

reasonably well with what your clients can afford to pay, and what similar

practitioners in your

area charge.

 

Best of luck,