Clinic Hour Cost: What It Is and How to Calculate Yours
Quick facts
- Definition
- The cost of keeping the professional and the clinic's structure running for one hour of care.
- Formula
- Monthly costs (fixed costs and the professional's draw) divided by the hours actually worked in the month.
- What it is for
- A minimum basis for pricing procedures and judging what is worthwhile.
- Common mistake
- Dividing by available hours, not worked hours, underestimates the hour.
The clinic hour cost is how much it costs the clinic to keep the professional and the structure running for one hour of care. It includes rent, staff, utilities, systems, taxes and the professional's draw (pro-labore). It is a pricing base: if a procedure earns less than the clinic hour cost, it eats into the month's result.
How is the calculation done?
Clinic hour cost = total monthly costs ÷ hours worked in the month.
Hypothetical example: a clinic with R$ 18,000.00 in monthly costs (including the professional's draw) and 120 hours actually worked has a clinic hour cost of R$ 150.00. If the schedule is poorly filled and worked hours fall to 90, the hour rises to R$ 200.00, because fixed costs continue.
Why count worked hours and not available ones?
Because idle capacity is also paid for. Dividing by available hours gives an artificially low hour and leads to prices that do not cover the month. See the ready-made calculation in clinic hour cost.
| Item | Included? |
|---|---|
| Rent, energy, systems | Yes |
| Staff and payroll charges | Yes |
| Professional's draw (pro-labore) | Yes |
| Patient materials | No, they belong in the procedure's direct cost |
| Taxes | Yes, proportionally |
Frequently asked questions
How do you calculate the clinic hour cost?
Add up the clinic's monthly costs and the professional's desired draw (pro-labore), and divide by the hours actually worked in the month. The result is the cost of one hour of care.