Insurance Billing
Manual for Massage Therapists
Figuring out your cost per client:
One of the things you can do to
help you decide if you want to accept insurance is to figure out your cost
per client using the following formula
1. Compute your office
overhead for a month:
You can take the last 12 months and divide by 12.
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Salary
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Rent |
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Other Salaries |
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Equipment Leases |
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Tables |
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Malpractice Insurance |
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Licensing Fees |
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Lotions/Oils |
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Sheets |
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Laundry |
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Music |
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Utilities |
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Office Supplies |
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Water |
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Magazines
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Books
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Copies
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Billing Services
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Association Fees
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Marketing
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Advertising
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Totals: |
2. Compute the number of
patients for the month. You can use last years patients divided by 12 or
estimate the number for this year.
3. Cost per patient = Total
monthly expenses____ divided by Total monthly patient visits
4. Evaluate
If you are planning on joining a
HMO or PPO, what is the expected income per treatment? Is it higher than the
cost per patient or less than the cost per patient?
How much will your cost per
patient vary when the number of clients increases due to becoming a member?
Will you have an increased volume that will make the cost per client less? Will
you get too many clients that you will have to hire office support to do the
extra work involved?
Will accepting insurance clients
be in tune with your personal and business mission statement? To learn more
about creating your mission, vision and purpose statements see
www.massagepracticebuilder.com
