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Descriptions of Billing Model Excel |
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Billing Model Excel- Forecast the impact of billing fee changes on Revenue, Profit and Clients.
This model was originally designed to test changes in billing structures for a Medical Practice (Public versus Private Billing), however it is equally suited to any professional practice and can be used to test the impact of fee changes.
When billing structures are altered they impact on client numbers and in turn revenue and profit. The Billing Model allows you to forecast what this impact will be. It does this using a Client Number Change Percentage.
This is the percentage change in client numbers when your billing structure is changed. For each business this is influenced by the level of competition, differentiation of the business, client profiles, and type of service provided. An estimate of this percentage combined with basic data on average billing fees and cost percentages allow revenue, profit and client numbers to be forecast for the range of billing fee combinations.
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