Digital-health finance: separate recurring fees from visits
A fictional virtual-care provider bills membership fees and visit fees. Finance needs to distinguish contracted recurring revenue, usage revenue and contribution while maintaining a service-capacity commitment.
Original Finance Circle digital-health scenario. All memberships, fees, visits and costs are illustrative and are not Teladoc results, reimbursement rates or interview questions.
Independent Finance Circle learning material. The source organisation does not sponsor, author or endorse this exercise.
Clarify. Structure. Calculate. Defend.
Take 2 minutes to clarify the decision and definitions, 3 minutes to structure the analysis, then work the exhibits. Finish with a concise recommendation and answer a follow-up. The time is a suggested practice format, not an employer requirement.
Clarify before solving
What are the data basis and reporting boundary?
Original Finance Circle digital-health scenario. All memberships, fees, visits and costs are illustrative and are not Teladoc results, reimbursement rates or interview questions.
Which assumptions can I use without requesting more data?
USD. 100,000 billed members each month at $7 per member. 12,000 billed visits each month at $25. Member-support variable cost is $2 per member per month; clinician-delivery variable cost is $8 per visit. Other fixed operating cost is $300,000 per month.
What decision am I expected to support?
Calculate additional visits, incremental operating profit and new total monthly operating profit.
Build your structure
- Membership versus usage-based revenue
- Member and visit delivery contribution
- Recurring run rate versus revenue and collections
- Service capacity and incremental support cost
Use the branches that matter to this decision. A memorised framework is less useful than explaining why each analysis could change your recommendation.
Everything you need to work the case.
Assumptions & boundaries
- USD. 100,000 billed members each month at $7 per member. 12,000 billed visits each month at $25.
- Member-support variable cost is $2 per member per month; clinician-delivery variable cost is $8 per visit. Other fixed operating cost is $300,000 per month.
- These are finance inputs, not clinical treatment or staffing recommendations. Capacity changes must meet actual safety, service and regulatory requirements.
- Director scenario: visits increase 25%, while an additional $30,000 monthly fixed support cost is incurred. Member count and pricing stay unchanged.
Illustrative monthly model
| Driver | Value |
|---|---|
| Members | 100,000 |
| Membership fee | $7 / month |
| Visits | 12,000 |
| Visit fee / delivery cost | $25 / $8 |
| Member support cost | $2 / member / month |
| Fixed operating cost | $300,000 / month |
Choose the responsibility. Solve the decision.
Each level uses the exhibits above and asks a different question. Your entries stay in this open page only; copy your work before leaving.
Build revenue correctly.
Calculate monthly membership revenue, monthly visit revenue and total monthly revenue.
Are visit billings recurring contracted revenue?
Numerical checks compare your arithmetic with the case model. Written recommendations are self-practice and are not automatically graded.
03 · Reveal worked solution & decision guide
Expected numerical answers
- Membership revenue
- 700,000 USD
- Visit revenue
- 300,000 USD
- Total revenue
- 1,000,000 USD
Work through the calculation
- Membership revenue = 100,000 × 7 = 700,000. Visit revenue = 12,000 × 25 = 300,000.
- Total = 1,000,000 per month.
A strong concise response
My calculation shows that membership revenue is 700,000 USD; visit revenue is 300,000 USD; total revenue is 1,000,000 USD. Do not treat variable visit revenue as contracted recurring revenue merely because it occurs each month.
Answer the interviewer follow-up
Are visit billings recurring contracted revenue?
Not under the case definition. They vary with usage, while the membership-only run rate is defined separately.
Assessment rubric · 20 points
For self-review or mentor discussion. This rubric is not an automated written-answer grade or an employer scoring system.
Correctly derives all 3 numerical results for this level, keeps signs and units consistent, and explains the method.
Explains the objective: Build revenue correctly. States the supplied scope, timing and metric definitions before calculating.
Do not treat variable visit revenue as contracted recurring revenue merely because it occurs each month. Addresses the interviewer follow-up without contradicting the facts.
Leads with a clear conclusion, distinguishes facts from assumptions, and identifies the next evidence needed. Does not claim the source company asked or endorsed this question.
Use full precision until the final rounding. Alternative written recommendations may be reasonable if they respect the facts and explain assumptions. This is Finance Circle’s guide, not an official source-company answer.
Source & attribution
The references below identify the public reporting, hiring guidance, research or mock-interview material used for context. Finance Circle wrote the exercise and its answers. Illustrative figures are explicitly identified; they are not company results or findings.
Company reporting supplies business context. All numerical scenario inputs are Finance Circle assumptions.
Source reviewed 30 October 2026. No external page is needed to answer this exercise. Company names and logos identify sources only. All trademarks belong to their respective owners.