By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    benefits of using protein powder to build muscles
    Protein Powder for Muscle Mass: Everything You Need to Know
    December 12, 2021
    changes brought on by blockchain in healthcare
    Technology In The Healthcare Industry
    March 28, 2022
    What Does Core Body Temperature Say About Health?
    August 17, 2022
    Latest News
    Health Benefits of Taking a Vacation to Reduce Your Stress
    September 27, 2023
    First Aid Training Enhancing Workplace Health and Safety
    September 25, 2023
    Beyond the Clinic: Medical Surveys Are a Roadmap to Passive Income for Doctors
    September 23, 2023
    5 Self-Care Habits to Help You Live an A+ Life
    September 21, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    NanoViricides Reports Positive Anti-viral Effect of HIV Drug
    August 16, 2011
    Elderly Women With Sleep Apnea at Higher Risk for Dementia
    September 14, 2011
    I’ll Believe This When I See It, and Other News
    October 21, 2011
    Latest News
    Job Seekers with Disabilities Should at Health Insurance Benefits
    September 12, 2023
    Reasons That Drug Prices Are Rising to Unsustainable Levels
    September 12, 2023
    How Revenue Lifecycle Management Helps Healthcare Providers to Optimize Business Operations
    September 6, 2023
    The Hidden Benefits of Practice Exams for Medical Professionals
    September 6, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Calculating the Lifetime Value of a New Patient for Your Medical Practice
Share
Sign In
Notification Show More
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Calculating the Lifetime Value of a New Patient for Your Medical Practice
FinanceHospital Administration

Calculating the Lifetime Value of a New Patient for Your Medical Practice

Jonathan Catley
Last updated: 2015/08/10 at 6:43 PM
Jonathan Catley
Share
4 Min Read
Patient-Lead-Generation-Physician-Marketing-Medical-Practice-Marketing
SHARE

Patient-Lead-Generation-Physician-Marketing-Medical-Practice-Marketing

Contents
Determining the ValueImproving the Lifetime Value of Your Customers

Patient-Lead-Generation-Physician-Marketing-Medical-Practice-Marketing

When it comes to marketing your medical practice there is a distinct value you assign to new patients. This value is used to help you set marketing budgets and make marketing decisions. Ultimately, you want the greatest possible return on investment. However, you could be using skewed numbers to make these determinations.

Why is knowing the actual value so important? The more you know about the lifetime value of gaining new customers for your practice the better prepared you are to set goals for your practice. This is not only for obtaining new patients, but also for extending the value of each new patient gained.

More Read

get a career in medical device sales

What Are the Benefits of Attending Medical Sales College?

Subscription Management Solutions Are Crucial for Telemedicine
Comfort And Safety: 7 Ways Healthcare Organizations Can Create A Better Environment For Their Patients
Best Practices for Healthcare Call Centers Should Follow in 2023
How Hospitals and Other Healthcare Providers Can Boost Employee Morale

When placing a specific dollar amount to each new patient gained, it will help you decide what kind of marketing budget your practice can tolerate.  

Determining the Value

So, how do you come up with the numbers to calculate the lifetime value of your customers or patients? Begin with the basics. While you want the number to be as close to exact as possible, it’s perfectly acceptable to use close estimates for the following information:

  • Average cost of office visits.
  • Number of times the average patient receives treatment.
  • Likely number of patient referrals.
  • Recurring revenue generated from patients.
  • Revenue from procedures.

For instance, if you charge $80 for an office visit and the average patient visits your practice 5 times per year then you can safely guess that each patient is worth a minimum of $400 per year for your practice.

However, if all of your patients refer at least two others to your practice, their values double. That’s without even considering recurring revenue and revenue generated from procedures. Those are just the results of normal office visits.

Then there is the lifetime factor. The longer the patient remains with your practice, you’ll continue earning the same or more yearly revenue year after year.

Improving the Lifetime Value of Your Customers

It’s great to know the lifetime value of each of your patients to your practice. What’s even better though is the knowledge that you can improve these values if you’re willing to make a few changes to the way your practice operates.

Make your medical practice a patient-focused practice. This creates loyal patients, improves patient retention, and generates an atmosphere where recommendations to friends and family become the rule rather than the exception. The dollar value of this kind of free advertising is immeasurable in today’s competitive medical community.

Most importantly, it costs much less to retain existing customers, as it does to seek out new customers so this helps your practice manage marketing resources even better.

The more you know about your patients, including the lifetime value they brings to your business, the better able you are to plan the business side of the practice. This is key in that it helps you to focus your attention on providing exceptional care, treatment, and patient satisfaction service when they are in your office rather than stressing over the business aspect of your medical practice. 

Healthcare Marketing Tracking, Healthcare Marketing Intelligence

 

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Jonathan Catley August 10, 2015
Share This Article
Facebook Twitter Copy Link Print
Share
Previous Article Telemedicine Is Easy, but Is It Effective?
Next Article The Five-Year Medical Degree

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

Andropause hormonal decline
The Benefits of TRT for Andropause and Hormonal Decline
Wellness September 28, 2023
Cancer Prevention
The Importance of Lipoma Examination in Cancer Prevention
Cancer September 28, 2023
dental implant
Cost Analysis of Dental Implants in Australia
Dental health September 28, 2023
View,Of,Niagara,Falls,In,Autumn
Health Benefits of Taking a Vacation to Reduce Your Stress
Health September 27, 2023

You Might also Like

medical billing training
Medicare

Navigating Through the Essentials: Medical Billing Training for Beginners

September 12, 2023
healthcare providers
Hospital Administration

How Revenue Lifecycle Management Helps Healthcare Providers to Optimize Business Operations

September 6, 2023
optimize healthcare business
News

Top Tips To Optimize Operations In Your Healthcare Office

June 30, 2023
Endocrinology
Hospital Administration

Improving Endocrinology Revenue Recovery is Crucial

June 14, 2023
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US
© 2008-2023 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Lost your password?