Revenue per member tells you what the average person on your panel pays you each month, and it's the quickest way to see whether your pricing is holding up.
How to compute it
Take your membership revenue for the month and divide it by the number of members on your panel. Use the same month for both. If your panel moved a lot during the month, average the starting and ending counts.
Example, made-up numbers: say you recorded $31,500 in membership revenue in March and had 420 members. $31,500 divided by 420 is $75 per member.
Use revenue from your books, not deposits from your bank. Hint deposits, for example, arrive net of fees, refunds and failed payments. If you divide deposits by members, your number comes out low and you'll chase a problem that isn't there. There's more on that in why your Hint report doesn't match your bank.
Keep meds, labs and enrollment fees out of it. Track those on their own lines so this number stays about memberships.
Why it moves even when your price doesn't
Your price list says what you charge. Revenue per member says what you collect. The gap usually comes from your mix of members.
Example, made-up numbers: say you have 300 adults at $85 and 100 kids at $40. That's $25,500 plus $4,000, or $29,500 from 400 members, which is $73.75 per member. Now add 50 more kids. Revenue goes up to $31,500, but you now have 450 members, so revenue per member drops to $70.
Nothing went wrong there. Your panel got younger. If you didn't know why the number dropped, though, you might think something broke.
Other things that pull it down are employer contracts at lower rates, comped or discounted members, family plans, and failed payments that stay uncollected. A price increase, fewer discounts or more adult members push it up.
What it tells you
Watched month to month, it answers practical questions. Are discounts creeping up? Is a new employer contract dragging the average? Did the last price change stick? Is a run of failed cards costing you more than you thought?
Look at the trend, not one month. A single month can swing because one big family joined or a batch of cards failed. Three months moving the same direction tells you something real, and that's when I'd go looking for the cause.
It's also the number underneath a lot of other decisions. You'll use it to find a break-even panel, plan a hire, or set a revenue goal. That's why it's one of the four numbers every DPC owner should know, and why it has to come from clean books.
What I'd check this week
Pull your last three months and compute it for each. Then look at these:
- Membership revenue from your P&L, not your bank deposits
- Member count for each month, counted the same way every time.
- How many members are on each plan or rate
- Any discounts, comps or employer rates added recently
- Failed payments still open
If the number is steady, things are fine. If it slid, the list above will usually show you why in a few minutes. If it went up, check that it's from a price change or mix shift you expected, and not an enrollment fee or a prepaid annual plan landing in one month.
Common questions
Should I include enrollment fees?
I'd leave them out. They're one-time payments, so they make a single month look better than your panel is.
What's a good revenue per member?
It depends on your prices and your mix of members. The useful comparison is your own number over time.
How often should I check it?
Monthly. Once the books are closed for the month, it takes a few minutes to compute.
Want this number in front of you every month?
Our Monthly Financial Partner service tracks DPC metrics like revenue per member and panel trend, with a monthly performance review and a monthly call. If you'd like that, apply to work with us.