9. CHAIR COST
The Equation
1. Subtract out your fixed costs assuming operating expense of 45%.
$220,000Fixed costs
-$180,000Operating Expense @ 45%
$400,000Practice gross income
Annualized actual revenue generating visits = 4160
2. Figure your “actual” patient visits per year.
10. CHAIR COST
The Equation
3. Divide your fixed costs by annualized patient
revenue visits.
Fixed costs visits Chair Cost
$220,000 / 4160 = $52.88
11. CHAIR COST
Determining Net Income
Provider Revenue per hour – Chair Costs = Net
Income p/hour
Provider Revenue per hour Chair Costs p/hr Net Income p/hour
$192.30 - $105.76 = $86.54