How to Calculate the Cost per Appointment and Set Competitive Prices for Your Clinic

Admin
Apr 29
3 min read

How to Calculate the Real Cost per Appointment and Set Fair Prices to Ensure Your Clinic’s Financial Sustainability and Market Competitiveness

Introduction

Setting the right price for a consultation is one of the biggest challenges for medical and dental clinics. Many clinic managers rely solely on intuition or local competitor prices without knowing the actual cost of each appointment. This approach compromises profitability and can threaten the financial viability of the business. In this article, we’ll provide a practical guide on how to calculate the cost per consultation and build a competitive and sustainable pricing strategy.

Understanding the Concept of Cost per Appointment

The cost per appointment is the average amount your clinic spends to serve each patient. It includes all fixed and variable expenses related to running the business, divided by the number of consultations performed.

Fixed costs are those that exist regardless of patient volume, such as:

Rent
Salaries and taxes
Accounting services
Equipment maintenance
Marketing

Variable costs are those that increase as the number of appointments rises, such as:

Consumables (gloves, masks, anesthetics)
Commission-based payments to professionals
Procedure-specific materials

Example: If a clinic has $6,000 in fixed monthly costs and performs 300 consultations, the fixed cost per appointment is $20. If variable costs average $4 per appointment, the total cost per consultation is $24.

Step-by-Step: How to Calculate the Cost per Appointment

List Fixed and Variable CostsStart by recording all monthly clinic expenses. Then, classify them as fixed or variable based on their relation to patient volume.
Estimate the Number of Monthly ConsultationsUse the average from the past six months to estimate how many appointments are held monthly. This yields a more accurate and reliable calculation.
Calculate the Average CostThe basic formula is:Cost per Appointment = (Fixed Costs + Variable Costs) ÷ Number of AppointmentsThis calculation reveals the minimum revenue needed per patient to break even.

How to Set Competitive Prices Based on Cost

Apply a Profit MarginAfter determining the cost per consultation, apply a healthy profit margin. Margins between 30% and 60% are common in healthcare, depending on the specialty and target audience.

Example: If your cost per consultation is $24 and you aim for a 50% margin, the minimum price should be $36.
Conduct Market ResearchUnderstand your positioning by analyzing:
- Prices charged by clinics with a similar profile
- The perceived value of your services (experience, quality, uniqueness)
- Socioeconomic characteristics of your target patients
The price must be competitive but sustainable.
Review RegularlyCosts change over time—rent increases, salary adjustments, and inflation on supplies all affect the cost per consultation. Prices should be reviewed at least once a year.

Practical Tip: Include Strategic ReservesWhen setting prices, add a small reserve margin for unexpected costs and future investments (such as facility upgrades, new equipment, or marketing campaigns). This ensures your clinic’s growth isn’t hindered.

Conclusion

Accurately calculating the cost per appointment and setting strategic prices is more than just sound financial management—it’s a key factor for your clinic’s longevity and growth. By knowing your numbers, applying reasonable profit margins, and staying informed about the market, your clinic can deliver high-quality care while maintaining strong financial health.