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Practice Cost Calculator


The Practice Cost Calculator is a financial model designed to assist you as private practice healthcare professional in ascertaining the cost of delivering healthcare services within your own practice by making use of your own financial information. The financial model is based on the principles of Activity Based Costing (ABC) for the allocation of overheads and makes use of clinical qualitative research performed by Harvard University, under license from the South African Medical Association, as the cost driver.

The Practice Cost Calculator will supply you with a calculated cost to perform procedures in your healthcare practice. This should be interpreted as the breakeven cost for performing procedures in your healthcare practice. The PCC will not tell you what you should charge for the performance of the procedures, as this has been ruled anti-competitive. The PCC rather displays the calculated minimum price that you can charge for the delivery of procedures without making a loss on the delivery of the procedures, based on your actual financial information supplied during the input phase. Once you have calculated the cost at which your practice will break even, you may make use of the features of the PCC to forecast your profit for the next financial year.

The objective of the Practice Cost Calculator is to assist private healthcare practitioners in:

  • Determining how much it costs to deliver a service;
  • Calculating their revenue per procedure or service;
  • Comparing their practice specific overhead costs to the payment received from patients and funders;
  • And to equip a private healthcare practitioner with the financial data to empower him or her to negotiate tariffs with funders or patients from a position of knowledge.

By employing this unique online tool and completing the four easy steps, private practice healthcare professionals will be equipped with the financial information to assist them in accurately planning and managing the financial wellbeing of their medical practices more efficiently.

In order to make use of the Practice Cost Calculator and for detail regarding the fees involved, please register a free profile, or login if you already have a profile, and navigate to your MPC homepage.

* SAMA members receive a 20% discount on the annual fee of the PCC