Average Hourly Income Rate

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Lyle Labardee, MS, LPC

• December 29, 2020 02:34
• Edited

Has anyone figured out how to accurately calculate a practice's average hourly income rate?  In other words, for every clinical hour billed, the practice averages $X in billed hourly revenue. This average hourly income rate is hugely important with respect to calculating margins. It will vary widely depending on the insurance panels, private pay mix, etc. that contributes to the practice revenue. It would seem  to me that SP captures all the necessary data to derive the answer (total inurance and client pay billing divided by number of hourly sessions for a given time period). Does this kind of reporting exist within SP?  I'm guessing the average hourly income rate ranges anywhere from $70 per hour to $100 per hour depending on the practice's geographic location, mix of insurance panels (inclusion or not of medicaid and medicare), and the private pay market it serves. 

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  Mary Killmeyer

  • January 12, 2021 22:18

  Once you click on the reports menu, you'll find the current and previous month total income and number of appointments as well as those numbers year to date. You can calculate the overall average by divide the income by the appointment number. In the bar graph that appears on the same page you'll see the month to month break down of income by private vs. insured payments but these numbers don't show the number of appointments for each but you'll get the percentage gist of where your income comes from. For a more detailed breakdown you can adjust the parameters of the Income Received reports to meet the time period you are searching for, which or all clinicians, and with or without insurance. From there download the csv report to sort and filter. There might be an easier way...

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  Ruth

  • January 16, 2021 03:13

  Hi Lyle and Mary, going to Reports > Appointment Status Report is definitely a way to calculate your average income for your practice. Thank you Mary for suggesting this method! Another way is to go to your Billing tab > Export Transactions, adjust the date range, and download the report in an Excel, or CSV spreadsheet. Then you can calculate your average income in the spreadsheet! 

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