Facility costs include base rent or mortgage costs, utilities, maintenance and upkeep, and taxes. If you own your own building, these costs are offset over time by any appreciation or depreciation in value.
A reasonable cost ratio for facilities in a general ophthalmology practice is 4% to 6% of practice collections. In pricier urban and suburban markets, facility costs will skew somewhat higher: Demand is higher, and land, vendor, tax and even utility costs can be much higher. What’s more, urban patients expect more lavish surroundings. It’s not unusual to pay 8% to 10% or more of revenue for retail-oriented facilities in the urban core.