Your Pricing Math Is Lying to You

I see this in almost every private-pay practice I work with.

The hourly rate looks right. The follow-up rate looks close. But when you actually do the math, the numbers don't add up.

Here's the rule most practitioners have backwards: the shorter the appointment, the higher the per-hour rate should be. Not lower.

Think about it. A 30-minute slot costs you the same setup and teardown time as an hour. You have to reset the room, update the chart, and transition to the next patient. You're not saving half the effort. You're compressing all of it.

So charging half your hourly rate for a half-hour visit is quietly giving money away.

The correct math: your 30-minute rate should be slightly more than half of your hourly rate. Your 15-minute rate, more again. The less time a patient buys, the more expensive each unit of that time should be.

This isn't about gouging anyone. It's about pricing that reflects the actual cost of your time. And when you've had the same rates for two or three years while everything else has gone up, you're already behind.

I sat down with a practitioner recently and recalculated her appointment rates in about 10 minutes. She'd been undercharging every short visit for years. She didn't need a price increase. She needed a math correction.

Your move this week: Divide your hourly rate by two. Is your half-hour rate at least that number? If not, you have a pricing math problem, not a revenue problem. Fix the math first.

Stay Profitable, Dan

Want help with your own numbers? Schedule a free numbers review. One call, two or three of your real numbers, and a clear next step.

This post first appeared in The Profit Weekly, Dan's Friday email for private-pay and hybrid practice owners. Get The Profit Weekly every Friday.