In order to calculate patient lifetime value, you must first have your:
Once you have these figures, finding Patient Lifetime Value is simple. The hard part is the pre-work.
Patient Lifetime Value Formula
Multiply your patient lifespan by your patient recall rate and gross profit per appointment. The product is your patient lifetime value.
This figure is a good representation of your revenue reality. It is based on your patients and data.
Patient Lifetime Value benchmarks depend on your specialty. The average PLV is about $3,000 for primary care physicians in the United States. If your PLV exceeds $10,000, you are doing a great job engaging your patients. If your PLV drops beneath $1,000, you should consult outside help immediately.
Patient lifetime value may be the most important figure for you to know while scaling a small healthcare business. You should also calculate your patient acquisition cost to improve your marketing budgeting.
Have any questions or suggestions? Need someone to calculate these KPIs for you? Let the meddkit team know here.
This article was originally posted at Meddkit.com. Meddkit helps private healthcare businesses get more consistent appointments, improve their web presence, and reduce technology stress.