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How to Calculate Monthly Practice Revenue


Do you manage a doctor’s office? Metrics are a key element in a medical practice’s success. Sales metrics help you evaluate the performance of your business team and other contributors.

Once you start looking at the charts and percentages in the customer relationship management (CRM) database, you can feel overwhelmed, which is why you need a sales metric to help provide accurate numbers for the monthly practice revenue calculation.

The sales metric that you should prioritize and analyze first is monthly recurring revenue (MRR). But what exactly is MRR for, and how can it help you calculate monthly practice revenue?

What is MRR?

Monthly recurring revenue (MRR) is a standard measure of predictable revenue that a medical practitioner can expect every month. For example, if you have 10 patients and each pays you $50 a month, your MRR is $500. MRR includes recurring charges from discounts and recurring add-ons but does not include one-time fees.

Faith Based Events
The Difference Between Revenue and Recurring Revenue
  • Revenue is the total income generated from normal operations or services.
  • Recurring revenue is a stable and predictable income. It is revenue that is expected to continue in the future.

Knowing the types of MRR can help you determine the areas you can improve upon by looking closer at your revenue growth.

Four types of MRR that may apply to your practice are:


New MRR is the amount of monthly recurring revenue gained from new patients. For this method, to calculate new MRR, if you have 10 new patients each month, half of them pay $100 per month, and the other half pays $50 per month; the new MRR is $750.

Formula: (5 patients x $100 = $500) + (5 patients x $50 = $250) = $750

Expansion MRR

Expansion MRR (also known as an upgrade) is an additional MRR from your existing patients. From the same example above, if five of your patients require additional services from you, that increases the bill from $50 to $100 a month; the expansion MRR would be $200.

Churn MRR

Churn MRR is revenue loss because of patients canceling their appointments or medical practices losing patients each month. For example, if a patient ended their subscription from your telemedicine services and three of your patients no longer need additional services, it decreases the patients’ payments from $100 to $50 a month, so the churn MRR is $200.

Net New MRR

Using the three MRR methods above, this is the formula to calculate net new MRR:

Net New MRR = New MRR + Expansion MRR – Churned MRR 

The result of the calculation determines how much MRR you’re earning or losing. If you want to know that you lose revenue, find the total of new MRR and expansion MRR. If they’re less than the churned MRR, then you’ve lost revenue. If the result is greater than the churn MRR, then you’ve gained revenue.

MRR is a crucial metric for business planning and calculating monthly practice revenue. It accurately calculates revenue and helps you determine if you have gained or lost income.

To discover a convenient way to potentially gain revenue, look to telemedicine through Curogram.

How can I gain monthly practice revenue with Curogram?

As part of an action plan, one way to increase monthly practice revenue is to integrate HIPAA-compliant software into your system. Based on recent findings, telemedicine’s market size has grown enormously, suggesting the COVID-19 pandemic played a major role. Healthcare mobility gives convenience to patients as they can consult their providers anytime and anywhere; no in-office visit is needed.

Curogram is an effective telemedicine platform for doctors that has helped medical practices increase patient traffic, improve online reviews, and reduce no-shows by 75%. You can reduce your overhead costs by reducing time on the phone.

The process of calculating your monthly practice revenue is rather simple and direct, but you may involve your accountant to get a better understanding of your practice‘s revenue generation or areas of loss. By investing wisely in telemedicine software, though, you can help your practice gain revenue — ultimately improving your MRR.