Cost Calculator AI
Healthcare & MedicalBreakeven Analysis

Healthcare Cost Per Patient Calculator

Calculate your clinic’s true breakeven cost to treat each patient, dividing fixed facility overhead and variable medical supplies by monthly patient visit volume.

Practice Financial Summary

Cost Per Patient Encounter Formula

Cost Per Patient = (Monthly Fixed Overhead + Staff Salaries) / Monthly Patient Visits + Variable Supply Cost Per Patient
  • Fixed Overhead Per Patient: Rent, software, utilities, insurance, and administrative payroll allocated per visit.
  • Variable Supplies: Direct medical supplies used during the encounter (gloves, syringes, PPE, dressings).
  • Breakeven Benchmark: The absolute minimum collection required per visit to avoid operating losses.

Step-by-Step Worked Example

Scenario: Clinic with $8,500/month fixed facility overhead, $22,000/month staff payroll ($30,500 total fixed), $18 in variable medical supplies per encounter, and 450 patient visits per month.

Calculation Steps:

  1. Total Monthly Fixed Costs = $8,500 + $22,000 = $30,500.
  2. Fixed Cost Per Patient Visit = $30,500 / 450 = $67.78.
  3. Variable Supply Cost Per Patient = $18.00.
  4. Total All-In Cost Per Patient = $67.78 + $18.00 = $85.78 per encounter.
  5. Total Monthly Clinic Expenses = $30,500 + (450 × $18) = $38,600/month.
Result: It costs the clinic $85.78 to treat each patient ($67.78 in fixed overhead + $18.00 in variable supplies). The clinic must collect at least $85.78 per visit to break even.

How to Use This Calculator

  1. 1Enter your monthly fixed facility overhead (rent, utilities, insurance, software).
  2. 2Input monthly clinic staff payroll expenditures.
  3. 3Enter the variable clinical supplies consumed per patient visit.
  4. 4Input your total monthly patient visit volume.

Assumptions & Limitations

  • Physician owner compensation is excluded from baseline operating breakeven calculations.

Frequently Asked Questions

Why is knowing your cost per patient so important?

Knowing your exact cost per patient allows medical practices to evaluate whether commercial insurance contracts and Medicaid fee schedules are profitable or causing financial losses.

How does increasing patient volume lower cost per patient?

Because fixed expenses (rent, staff salaries) remain constant, seeing more patients spreads that overhead across more visits, significantly reducing the fixed cost component per encounter.

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