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Cost Analysis of House Calls vs. Office Based Practice |
| | | General & Administrative Expenses (Monthly) | House Calls (Monthly) | Office-Based Practice (Monthly) | | Advertising | $3000.00 | $3000.00 | | Consulting/Practice Management | $400/mo | $3,500/mo | | Dues, fees & Subscriptions | $100.00 | $100.00 | | Hospitality | $200.00 | $600.00 | | Auto Insurance | $120.00 | $0 | | Auto Repair & Maintenance | $120.00 | $0 | | Gasoline Expense | $300.00 | $0 | | Gasoline Expense | $300.00 | $0 | | Med Mal Insurance | $1000.00 | $2000.00 | | Liability Insurance | $100.00 | $200.00 | | Equipment Lease | $0 | $2000.00 | | Medical Supplies | $200.00 | $1500.00+ | | Office Supplies | $100.00 | $1000.00+ | | Medical Assistant Payroll | $2000.00 | $4000.00 | | Front Office Payroll | $0 | $2500.00 | | Office Rent | $600.00 | $4500.00 | | Medical Billing Fees | 10% Gross Total | 6% Gross + Employee | | Benefits | $8,220/month | $24,900/month | | House Calls Breakeven Point | | Office Based Practice Breakeven Point | Working days per month: 22
Average Transaction: $125/patient
(Read Article on Increased Reimbursement and House Calls)
$125/patient/$8,220 = 66 patients/mo
You need < 1 patient/day | | Working days per month: 22
Average Transaction: $75/patient
$75/patient/$24,900 = 332
You need 15 patients/day | | Daily Operating Cost: House Calls Practice | | Daily Operating Cost: Office Based | | $374/day to operate | | $1,132/day to operate | | Summary: The cost of operating an office-based medical practice is more expensive and the reimbursement is lower as opposed to a medical house call practice where the cost of operating is lower and the reimbursement is higher. The most important thing to take into consideration is that the medical house call concept has more marketing appeal to the end user (the patient) than an office-based practice. |
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