Last week, we explored the cost of purchasing a Neubie® device for your practice and reviewed everything that we include to help our physical therapy, chiropractic and other practitioners be successful right from the start.
This week, we’d like to look at the Return on Investment (ROI) that can be generated from adding a Neubie device to a practice.
As a term, “ROI” gets bandied about a lot, but what does it really mean?
When you invest in something, you expect a return, otherwise why would you make the purchase? Returns are typically measured quantitatively such as an increase in revenue that is achieved because of an investment. When you take the return that is generated, let’s use revenue, and divide the cost of the investment into that number, such as the cost of a Neubie device, you can determine your ROI.
As a hypothetical example, if your Neubie device costs $1 and you generated $3 in incremental practice revenues, your ROI would be 300% ($3/$1). Your practice brought in 300% of your initial cost outlay through incremental revenues.
“Break even” is a related term and refers to the point when you get your investment back. In the same example, breakeven would occur when your practice generated $1 in incremental revenues which is equal to the fictitious cost that we used for the Neubie device in this example.
But there are also really important intangible benefits that come with investments that aren’t easy to quantify.
- For example, what is the value to a patient who can reduce or eliminate their pain after an injury or surgery more quickly?
- What is the value of a patient’s satisfaction with the care that you and your team provide?
- What is the value of the goodwill that you generate with your patients and the increased satisfaction of your practice team?
Over time, you may find that these intangibles yield meaningful outcomes for your practice such as increased patient referrals, lower staff turnover, increased productivity, new relationships with other caregivers, and more.
ROI with Neubie
Now let’s look at the ROI potential from adding a Neubie device to your practice.
We’ve recently added a Neubie ROI calculator to our website so you can explore different scenarios based on whether you purchase or finance your device. You can also adjust your assumptions for how many sessions you would book each week with the Neubie device and select what you would charge for a Neubie session.
For simplicity’s sake, let’s assume you purchase your Neubie for a price of $18,000. If you used the device for an average of 10 sessions per week at an average session price of $140, (most of our customers report charging between $100 and $200 per session), you would generate $70,000 in practice income after a year assuming 50 weeks of use. That means your investment yielded you an ROI of 389% ($70,000/$18,000 = 3.89 *100). That also happens to be an outright profit of $52,000! Not only would you have paid for the cost of the Neubie device, but you would have generated nearly the same revenue again above and beyond the cost.
To calculate your break even just take the cost of the Neubie and divide into that number the average session charge. Using the same assumptions, if you charge $140 per Neubie session, you will get your investment back in 129 sessions ($18,000/$140 = 128.57). If you charge $180 per session, the breakeven point lowers to 100 sessions. Calculating the breakeven point is helpful to gauge how much risk you are taking. The quicker the anticipated break even threshold, the more confidence you have in making the initial investment.
Of course, every practice’s “mileage will vary”, and there is no guaranteed return on investment. What our customers find, however, is that the Neubie device brings them a differentiated patient care offering that delivers meaningful pain relief results to the delight of their patients. These outcomes can pave the way for more Neubie sessions in their practice generating additional revenue. And, of course, there are the many intangible benefits or returns that can also be realized which can account for more practice revenue or cost savings over time.
Win/win opportunities are not always easy to find, but we think the Neubie device as part of the NeuFit® Method is a powerful one. Investing in the capabilities of neuro-muscular re-education through direct current stimulation is an investment in both your patients’ and your practice’s well-being with positive “returns” for both! Contact us today for more information.
Let’s charge forward to better outcomes together!