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What Is The Cost Per Encounter?

Description:

This KPI shows your practice cost per encounter.

​Why is This KPI Important?​

This KPI is important because it helps you ascertain the cost to provide care for each patient you see. This becomes a valuable statistic when you are negotiating with managed care companies so you know what it will cost you on average to provide care to a child - especially in capitated contracts!

PMI Recommended Frequency to Run this KPI:

Monthly

Formula:

Total Operating Expense / Office Encounters

Show the Math:

$450,000 / 5,000 = $90.00

How Should I Track It?

This KPI can be tracked using an Excel spreadsheet by Practice and/or Department if you categorize expenses properly.