Average Revenue per Patient

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Average Revenue per Patient is calculated by dividing Total Revenue by the total number of patients.

This metric is used in the Pharmaceutical and Healthcare Industry, Home Healthcare Industry and other related medical industries.

The metric provides insight on to how much money the company receives for its average "customer" or patient. All else equal, a high average revenue per patient is better than a low one. This means that the each individual customer buys more from the company. This metric also provides insight into whether the company faces a relatively large pool of customers and a small amount of revenue (indicated by a relatively low average revenue per patient) or a relatively small pool of customers and a large amount of revenue (indicated by a relatively high average revenue per patient).

Example

  • If company XYZ has a total revenue of $500M and has served 1M for the fiscal year ended in 2009, then its average revenue per patient is $500 or ($500M)/(1M) which equals $500.
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