As the practice of medicine becomes more complex, there is an increasing need to understand what is involved in delivering the right service at the right time to the right patient. A basic component of managing any business is to understand the cost structure that goes into the provision of that service. This article identifies the cost components of one practice with the goal for the reader to apply the information to his or her own practice. How much does it cost to see a patient, and what are the components of that cost structure that add value to the patient service or what are the components that we can control? Setting the standard and developing the measurement of that process to form an internal benchmark will help ensure a successful practice in the long-term.
