Revenue Per Treatment
What is revenue per treatment?
Revenue per treatment is a financial metric that provides the average revenue per type of treatment. This is in comparison to other cost analyses, such as revenue per clinician or revenue per patient.
With revenue per treatment, the healthcare facility can gauge the profitability of each treatment type, which can help identify those that are the most advantageous or those that are low-performing.
How can providers leverage revenue per treatment?
Revenue per treatment offers insight into the top and lowest-performing treatments regarding the revenue they bring to the facility. This data can guide many decisions. For instance, providers can choose to market their high-revenue treatments and focus on bringing in referrals to those who need these services.
Furthermore, knowing which treatments have a higher revenue may influence appointment scheduling. When a facility only has so many appointment slots, they may ensure that they leave a certain number open for their higher-revenue treatments.
As for low-revenue treatments, providers can focus on ways to increase the revenue of these services, including determining which extraneous expenses can be cut to make these treatments more profitable.
By leveraging the data provided in revenue per treatment, providers can allocate their resources effectively and enhance the facility’s overall revenue and cash flow.