If the total expenses for a medical practice are $150,000 and the total procedures are 300, what is the cost ratio?

To determine the cost ratio, which represents the average cost per procedure for the medical practice, you divide the total expenses by the total number of procedures performed.

In this case, the total expenses amount to $150,000, and the total number of procedures is 300.

Performing the calculation:

Cost Ratio = Total Expenses / Total Procedures Cost Ratio = $150,000 / 300 = $500

This indicates that the average expense incurred per procedure is $500, which provides insight into the operational costs associated with each service delivered by the medical practice.

Understanding this ratio is important for medical administrative assistants, as it helps assess the financial health of the practice and can be used to make informed decisions regarding pricing, budgeting, and scaling services.