Medical Practice Management
Apr 01

Is your physician practice tracking average reimbursement per encounter?

As mentioned in the last few blog posts, quality metrics provide the indicators physicians need to measure how their practice is performing. In this post I take a look at how doctors can identify the amount they should be collecting for each patient visit.

Metric to Measure – Average Reimbursement Per Encounter

What It Is

This is the average amount a practice collects per encounter.


Total Reimbursement ÷ Number of Encounters in a Given Time Period


Due to variation across specialties, there is no universal industry benchmark for this metric.

Why It Matters

When benchmarked within a specialty, this metric gives practices a sense of whether they’re performing well or could realistically be bringing in more money. When tracked over time and compared with historical practice results, it provides a simple, yet powerful gauge of whether your practice is trending in a positive or negative direction. If negative, your practice must take steps to get back on track (e.g., by diversifying your patient or payer mix).

Again, the average reimbursement per encounter fluctuates according to the type of patients you treat. Speak with other specialists or conduct some Internet research to see if your price points match industry standards. You could be missing out on a substantial amount of revenue.

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →