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FINANCIAL CONSIDERATIONS of a PATCH TEST CLINIC

This is the abstract of the paper "Building a Patch Test Clinic" presented at the
15th Annual American Contact Dermatitis Society Meeting, February 5th, 2004, at
the Renaissance Hotel, Washington, D.C. by Debra D. Fett, M.D.

BUILDING A PATCH TEST CLINIC

Debra D. Fett, Margo Schlewitz, Department of Dermatology, Indiana University,
Indianapolis, Indiana

Patch testing is critical to evaluation and treatment of contact dermatitis. Time, expense, and antigen accessibility may even seem prohibitive.

Objective:To develop a patch test clinic which is financially viable and clinically gratifying.

We started by purchasing supplies, hiring a detail-oriented nurse, and ordering antigens through Chemotechnique (CT). Pharmacy prepared additional antigens not available through CT. We then started our patch test clinic, testing 6 to 8 patients per week.

The initial start-up costs were approximately $13,000. Antigens comprised most of the expense at $9,000. At .625 FTE, the average nursing cost with fringe benefits is $89 a test. The average number of patches per test is 82 for a total direct cost of $159.00/test. At $24.00 per patch (comparable pricing), the average charge per test is $1,968 and the average collection is $1,144.00/test. Subtracting the direct expenses
and allowing 45% of the revenue for indirect expense, the expected profit per test is $470 or $124,000 over 44 weeks.

These numbers reflect our clinic's first 7 months. We anticipate both collections and patient numbers to increase over time.

Conclusion: Developing a viable patch test clinic is possible, challenging and gratifying

 
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