Tessic Health

FLAT FEE VS REVENUE SHARE

Flat fee vs revenue share: what you actually keep

The worked example puts one brand with 1,000 patients on two sets of terms: Tessic's flat fee, and a 30% medication markup plus a 10% revenue share. Enter the terms from any quote and every table recalculates.

THE CALCULATOR

Change any number.

The page opens on a worked example. Edit any input and every figure, table and step updates as you type.

Tessic program (flat fee side)
Your clinic
The percentage model's terms

Worked example

At 1,000 patients, a brand on a flat fee keeps $97,000 a month. On a 30% medication markup plus a 10% revenue share it keeps $42,100. The flat fee leaves $658,800 more with the brand every year.

Kept per patient, flat fee
$97.00
Tessic Grow
Kept per patient, percentage
$42.10
30% markup + 10% share
Extra kept per year, flat fee
$658,800
At 1,000 patients
Flat fee comes out ahead from
36 patients
What you keep per patient each month
Flat fee (Tessic Grow)Markup + revenue share
Patient pays$249.00$249.00
Medication at wholesale$140.00$140.00
Markup on medication$0.00$42.00
Revenue share$0.00$24.90
Provider visits$10.00$0.00
Platform fee, per patient$2.00$0.00
Total paid out$152.00$206.90
You keep$97.00$42.10
Platform's cut, per patient$12.00$66.90

The platform's cut is everything paid out except the wholesale cost of the medication.

Across 1,000 patients
Flat feeMarkup + shareDifference
Patient payments per month$249,000$249,000$0
You keep per month$97,000$42,100$54,900
You keep per year$1,164,000$505,200$658,800
Platform's cut per year$144,000$802,800
What you keep as you grow
Active patientsFlat fee, kept per monthMarkup + share, kept per monthExtra kept per year, flat fee
100$7,900$4,210$44,280
500$47,500$21,050$317,400
1,000$97,000$42,100$658,800
5,000$493,000$210,500$3,390,000
10,000$988,000$421,000$6,804,000

The flat fee stays the same as the book grows; a percentage grows with every patient added.

How the numbers work

  1. A 30% markup on $140.00 of medication adds $42.00 per patient each month.
  2. A 10% revenue share on a $249 monthly price takes $24.90.
  3. On Tessic, 0.4 visits per patient each month at $25 a visit is $10.00, and the $2,000 Grow platform fee spread over 1,000 patients is $2.00.
  4. Flat fee: $249.00 - $140.00 - $10.00 - $2.00 = $97.00 kept per patient.
  5. Percentage model: $249.00 - $182.00 medication - $24.90 share = $42.10 kept per patient.
  6. Across 1,000 patients and 12 months the flat fee keeps $658,800 more. That difference covers the one-time $15,000 Grow setup fee in 9 days.

THE WORKED EXAMPLE

Where each default number comes from

Every input the worked example uses, and the reason for it. Tessic's own fees are published prices; everything else is an estimate to replace with your own.

Tessic program (flat fee side)
Grow: $2,000/mo + $15,000 setup
Grow, at the $2,000 monthly fee used in the article's example. It adds automation, integrations and analytics to everything in Launch.
Active patients
1,000
The book size in the Tessic article "Why zero markup matters".
Price per patient per month
$249
A monthly program price with medication included. $249 leaves both models a positive margin on $140 of medication.
Medication cost at wholesale
$140
Per patient per month, from the same article.
Provider visits per patient per month
0.4
About 400 visits a month for 1,000 patients: first visits plus follow-ups every few months, as in the article.
Their markup on medication
30%
The article puts common white-label medication markups at 20 to 40 percent. 30% is the middle. Enter the number from your own quote.
Their share of revenue
10%
A 10% share of top-line revenue, as in the article's example.
Their monthly platform fee
$0
Left at $0, which flatters the percentage model. Add it if your quote has one.
Their fee per provider visit
$0
Also left at $0 for the same reason.

NOT COUNTED

What these numbers leave out

  • Advertising and card fees. They are the same under both models, so they do not change the gap.
  • One-time setup fees on either side. The Tessic setup fee is set against the monthly difference in the last step above.
  • Minimum volumes, per-order charges and contract lengths. Enter a charge as the monthly fee or per-visit fee to include it.

QUESTIONS

Questions founders ask

Why count a medication markup as a revenue share?
Because it works the same way. A markup is a percentage taken on the pharmacy line instead of the top line, and it grows with every refill. Ask any platform for the wholesale invoice next to what the brand is billed.
Where do the 30% markup and 10% revenue share come from?
They match the worked example in the Tessic article "Why zero markup matters", which puts common white-label medication markups at 20 to 40 percent, plus a share of top-line revenue. Enter the terms from your own quote to replace them.
What does the $25 visit fee cover?
The full cost of a licensed provider completing the visit: clinical review, the prescribing decision and documentation in the patient record. It is $25 in all 50 states, the same on every plan, and charged only when a visit is completed.
Does Tessic take a percentage anywhere?
No. Tessic takes no revenue share on any plan and no markup on medication. Its fees are the one-time setup fee, the monthly platform fee and $25 per completed visit.
When does a percentage model cost less?
With very few patients. A flat platform fee stays the same at any size, so across a handful of patients it can cost more per patient than a percentage. The last tile above shows the patient count where the flat fee pulls ahead.

MORE CALCULATORS

Run the other numbers