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
    stress disorder
    5 Ways To Manage Post-Traumatic Stress Disorder
    October 27, 2021
    Medical device classification and development strategies
    Medical device classification and development strategies
    April 5, 2023
    varicose veins
    Varicose Veins Prevention: 3 Lifestyle Changes to Make Right Now
    May 1, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • 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
    health benefits of gene targeting research
    Breakthroughs in Gene Targeting in Mouse Can Help Humans
    December 4, 2022
    Weighing Up the Advantages and Disadvantages of Nursing Homes
    October 31, 2022
    get second opinion to avoid medical errors
    The Role Of Second Opinions In Medical Errors
    December 10, 2023
    Latest News
    Top HIPAA-Compliant Messaging Apps for Healthcare Teams
    June 25, 2025
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: What Is the True Value of a New Patient?
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > What Is the True Value of a New Patient?
BusinessFinance

What Is the True Value of a New Patient?

Dan Stempel
Last updated: April 26, 2014 8:00 am
Dan Stempel
Share
6 Min Read
New Patient Revenue, Medical ROI, Online Marketing, Healthcare
SHARE

When you work in the lead generation business as we do, and your stock-and-trade is proving the return on investment you provide your client(s), one of the key questions that we ask all of our clients is “How much is a new patient worth to you?” It is the output to our input (which of course is the cost of a marketing program), the ying to our yang, and we cannot calculate an ROI without it.  While every patient is certainly unique, and no two may follow the exact same path, it is rather important to get a sense of the value of an ‘average patient’ when assessing your marketing RO

When you work in the lead generation business as we do, and your stock-and-trade is proving the return on investment you provide your client(s), one of the key questions that we ask all of our clients is “How much is a new patient worth to you?” It is the output to our input (which of course is the cost of a marketing program), the ying to our yang, and we cannot calculate an ROI without it.  While every patient is certainly unique, and no two may follow the exact same path, it is rather important to get a sense of the value of an ‘average patient’ when assessing your marketing ROI.New Patient Revenue, Medical ROI, Online Marketing, Healthcare

Over the years, the responses we’ve received to this question have made we wonder whether all our clients have a full understanding of how much value a new patient brings into their practice.   One of the reasons I say this is because those clients that seem to answer this question more confidently and precisely tend to state values that are 2-3X higher than that of their comparable colleagues. When asked, these are some of the items they cite as considerations:

  • Appointment revenue – If reimbursed separately, appointments alone often net $150-$300 of revenue.
  • (Targeted) Procedure revenue – When devising your marketing plan, you should target those procedures that are more profitable to maximize your new patient value.  If you are an orthopedic surgeon, you may want to look at the value of knee, hip, hand/wrist, shoulder, back/spine, elbow/arm, and neck patients separately to determine which to target. Generally you want to target a patient type or procedure where the expected reimbursement is $2000 or more (we typically target procedure/patient types in the $2K – $200K range).
  • Ancillary revenue – Don’t forget any revenue you may get from smaller procedures (e.g., injections, biopsies, endoscopies), diagnostic tests (e.g., radiology scans, blood tests, EKG/EEGs) or products (e.g., compression stockings, braces, splints, medications).  Every little bit helps.
  • Recurring revenue – Look at your new patients over a longer time horizon (multiple years).  Many, once they know the practice, will end up coming in later years for additional visits, procedures, etc.
  • Referred patient ‘goodwill’ – If you end up having to refer the new patient to another doctor/specialist, although you won’t directly benefit, the goodwill you create by doing this may come back to you as additional downstream referrals.
  • Referred patients (Word of Mouth advertising) – This is often the largest component of missed new patient value.  A new patient who comes in to your practice and has a good experience, will often refer your practice on to other friends, family, and colleagues (who may come, also have a good experience and further refer to their friends, family and colleagues, and so on and so on).  When considered fully, this impact often has a multiplicative effect on new patient revenue.
  • Investment from other stakeholders – Sometimes other parties benefit (financially) from your new patients.  The classic example here is a surgeon who always performs a given procedure at a certain hospital or surgicenter.  While the surgeon collects the surgeon’s’ fee, the hospital/ASC collects the facility fee (which is often 2-3X+ that of the surgeon’s fee).   MDs can often get the facility to cover part (or all!) of the marketing investment (especially when they can show that it is actually working).   Obviously Stark laws need to be fully considered in this scenario (please consult your lawyer). 

Mining the data within your billing systems will likely give you the answers to many (but not all!) of the above financial considerations.  Even if you don’t have access to such detailed data in your systems, it is important to consider the various ways a new patient can positively impact your bottom line!

More Read

Cue the Confetti! Startups Can Begin Soliciting Investors on Monday
Is The FDA Keeping Us Fat?
Patient and Family Advisory Council: Lessons Learned
Can a Mandated Health Benefit Violate a Corporation’s Religious Freedom?
PureTech Will Help Type 1 Diabetes Treatments Cross the “Valley of Death”
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

women dental care
What Is a Smile Makeover and How Much Does It Cost?
Dental health
June 30, 2025
HIPAA-Compliant Messaging Apps
Top HIPAA-Compliant Messaging Apps for Healthcare Teams
Global Healthcare Policy & Law Technology
June 25, 2025
recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025

You Might also Like

How The Medical Device Industry Lobbies

February 29, 2012

Why Is There a Problem with Health Care Quality?

April 13, 2011
Outsourcing_RCM
BusinessFinanceHospital Administration

Risks and Benefits of Outsourcing Revenue Cycle Management Functions

December 4, 2014

Healthcare Pendulum, Has It Swung Too Far?

February 15, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?