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Billing Model Excel
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Version
10
This model was originally designed to test changes in
billing structures for a Medical Practice (Public
versus Private Billing), however it is equally suited
to any professional practice and can be used to test
the impact of fee changes. When billing structures
are altered they impact on client numbers and in turn
revenue and profit. The Billing Model allows you to
forecast what this impact will be. It does this using
a Client Number Change Percentage. This is the
percentage change in client numbers when your billing
structure is changed. For each business this is
influenced by the level of competition,
differentiation of the business, client profiles, and
type of service provided. An estimate of this
percentage combined with basic data on average billing
fees and cost percentages allow revenue, profit and
client numbers to be forecast for the range of billing
fee combinations. The model considers two billing
structures, Current (1st) and Proposed (2nd). From
basic billing and cost data breakeven points at
revenue and profit will be calculated for the proposed
billing structure. Breakeven points tell you the
Client Number Change Percentage at which your current
and proposed billing structures provide the same
Revenue or Profit. If you change billing structures
and the Client Number Change Percentage is greater
than the Revenue Breakeven your Revenue will decrease,
if it is greater than the Profit Breakeven your Profit
will decrease. You can input an Estimated Client
Number Change Percentage to forecast the Revenue,
Profit and Client Numbers for your business for the
full range of current and proposed billing structure
combinations. Full results are displayed in easy to
interpret Charts and Table format. Details displayed
include Revenue, Profit, and Client Numbers.
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