Adding Continuous Glucose Monitors (CGMs) to your care plan not only enhances patient outcomes but also creates a profitable and scalable revenue stream for your practice while providing actionable data for your clients.
This guide will help you structure CGM in pricing models for one-month, three-month, and long-term care plans, factoring in CGM costs, hourly rates, and other components of the overall package.
Package Cost Calculator
Hourly Rates
The most important component of any well-structured Care Plan Package is confirming your and your team’s hourly rate. Pricing hourly rates are often defined by the designation of the field of your specialty but is up to your discretion. For additional context, here are some average hourly rates by designation from Practice Better:
- Naturopathic Doctor $375
- Medical Doctor $350
- Naturopath. $350
- Functional Medicine Practitioner $300
- Lactation Consultant. $300
- Nutritionist. $275
- Nurse Practitioner. $270
- Dietitian $250
- Nurse $250
- Holistic Nutritional Consultant $220
- Wellness Professional $160
- Health Coach $160
Consultations (Labor Cost)
Once you’ve established the hourly rates for your services, the next step is to determine the number of consultations included in your package. This may consist of an initial consultation (which is typically longer) followed by shorter, regular follow-ups.
For example, if you offer a 3-month package that includes:
• One 60-minute initial consultation
• Weekly 15-minute follow-ups (for 11 weeks)
Then, the total time spent with the patient over three months is 3.75 hours.
Pricing Breakdown:
• Hourly Rate = $250
• Total Time Spent = 3.75 hours
• Total Cost = $937.50 (Hourly Rate × Time Spent)
Fixed Costs
Next, you’ll need to determine the cost of any additional offerings in your package, such as lab tests, CGMs, or supplements. Example costs may include:
• Comprehensive Metabolic Panel (CMP) ($75)
• Lipid Panel (Cholesterol) ($60)
• Supplements ($250)
• Micronutrient Testing – ($500)
• Hormone Panel ($400)
• 12x CGMs – 3-Month Supply + Activation ($693)
Before incorporating these fixed costs into your package, first confirm your take rate on these offerings. It’s important to note that some partners may provide affiliate rates where you earn commissions on sales, while others may offer discounted pricing below the public market rate. You should include these factors in your decision-making process.
At this point, you have two pricing strategies:
1. Pass the costs directly to the customer
2. Increase the price as an upsell to enhance perceived value
Example Package Breakdown:
Let’s say you include the following in your package:
• Hormone Panel ($400)
• Supplements ($250)
• Comprehensive Metabolic Panel ($75)
• 12x CGMs – 3-Month Supply ($693)
Your total fixed cost is $1,418. If you choose to increase prices by 10%, your final pricing calculation would be:
Total Cost = (Total Fixed Cost) × (Upsell Percentage)
• Total Fixed Cost = $1,418
• Upsell Percentage = 1.1 (10% increase)
• Final Price = $1,559.80
Conclusion:
Let’s figure out the total package cost and how much profit you’ll make as the provider of that package offering.
Final Price = (Labor Costs) + (Total Fixed Costs x Upsell Percentage)
- Labor Costs = $937.50
- Fixed Cost + Upsell = $1,559.80
- Final Price = $2500 (rounded from $2497.30)
Now let’s figure out your profit on this package which will include any commissions earned on your sales.
Let’s say you earned the following commissions:
- Hormone Panel ($25)
- Supplements ($50)
- Comprehensive Metabolic Panel ($10)
- 12x CGMs – 3-Month Supply ($125)
Total Revenue = (Final Price – Fixed Costs) + (Commissions Earned)
- Final Price = $2500
- Fixed Costs = $1,418
- Commissions = $210
- Total Revenue = $1,292