How do you price your Direct Primary Care Practice to earn $70 per member per month?
Today I got an email asking a great question:
Dr. Thomas,
I'm getting close to giving my 120-day notice to my employer, with a target DPC start date of September!
I have a pricing question. If you prefer not to answer, I totally understand. In your business plan, you stated that your target average PMPM monthly rate was $70. Have you been able to achieve that?
Thanks, and have a great day!
This is a great question because in your business plan, you should figure out how much money you need to make to have a successful and thriving practice.
Because we work in a lower income community, Southwest Detroit, our pricing is lower to meet the needs of our community. Our per member per month revenue is around $50. We recently increased our prices to bring our per member per month revenue up to $55 monthly. This will help us to be more sustainable and profitable in the long term.
If you were to price a Direct Primary Care practice to make $70 per member per month, it would probably look like this:
$25/month for children
$65/month for young adults
$80/month for older adults
The cut off for kids would be 17 and under, the cut off for young adults and older adults would be around 40 or 45 or 50 years of age, depending on your demographic.
I’ve been active on TikTok and I’m happy to answer any questions you have like this!
Best of luck in building your DPC practice,
-Dr. Paul Thomas with Startup DPC