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A Service’s Revenue Contribution and Profit Contribution May Differ Where a practice gets its profit is not always the same place it gets its revenue
Mix Productivity Cost
Revenue vs. Profit Contribution (Private Practice Average)
Note: Where applicable, all analysis assumes “steady state” ranibizumab reimbursement of $2,038 per unit (actual profitability for 2006 was not reliable due to ranibizumab’ mid-year FDA approval and short-term cash flow timing issues). Post-op visits are allocated to surgeries and appropriate clinical procedures
Together, surgeries and clinical procedures generate 38% of
revenue but 67% of profit
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