To bulk-bill or not bulk-bill? That is the question.
There are many factors to consider when planning your revenue model; it’s a good idea to enlist some experienced help to qualify your numbers here, especially if this is not your area of expertise.
When it comes to planning your revenue, several aspects of the planning you’ve already done will come into play. Firstly, you should have a fair idea on your target demographic and location. This will dictate the kind of patients you are likely to expect based on geographical circumstances.
Secondly, you should have a clear outline of the services you want to provide and the vision of your practice. What does this look like? Combining these, you will be able to get an idea of the billing that fits. Are you providing a high tier service to working professionals, is your clinic going to be family orientated, or will you be providing low cost care to those who need it?
With bulk-billing practice numbers on the rise and heading towards 70%, you must strategically consider how you will compete and provide value to your patients and also build a profitable practice.
The fees that you charge will be evaluated by your patients against the perceived value that they derive.
As a general rule, high tier medical services will allocate more time to their patients and will see less through the door, and bulk billing practices will typically have shorter appointments and see many patients on a daily basis.
It’s important to work out your running costs and ensure that your budgeting fits with your billing model. What is your bottom line, and how many patients will you need to come through the door each week to ensure you’re not running at a loss?
Investing behind the value that you deliver to your patients and then charging them appropriately will ensure that you create a sustainable and profitable revenue model for years to come.
Planning your revenue model will take a lot of work and will most likely be ‘tweaked’ a lot before you find something that works, and that is realistic. However, once you have it, this will become one of the greatest tools. Not only will your revenue model be essential for securing financing (if you need it), but it will also be used to set goals for marketing and acquiring patients, and be a useful benchmark for determining your success.
Now that you’re more equipped to plan your revenue model, it’s time to move on to the next phase; planning your branding and market positioning.