Welcome to the Optimised Practice Podcast! In today's solo episode, Blake Sergeant tackles the often-emotional topic of healthcare practice pricing and explains how to set your fees so that you, your team, and your patients all benefit.Many practice owners make the mistake of undercharging, especially in the early days. Blake reveals why this approach becomes unsustainable as you grow and aim to build a team. He emphasises that turnover is for vanity, profit is for sanity, and that even high patient volume won't save a business with flawed pricing.Learn the key goal for pricing: achieving a 20% net profit after you've been paid, all while maintaining a healthy 75% utilistion rate. Blake walks you through the "Practice Percentage Pyramid," detailing ideal allocations for:Practitioner salaries: (target of no more than 40% of revenue)Rent: (around 7%)Support team: (about 13%)All other costs: (20%)Blake also introduces the "Three W Triad" for decision-making: Is it good for the Patient? Is it good for the Team? Is it good for the Business/Owner? He challenges the common pitfall of focusing solely on keeping prices low for patients, often at the expense of team well-being and owner profitability.If you want to attract and retain top talent, avoid burnout, and build a truly sustainable practice, this episode is a must-listen!
Watch this on Youtube