Every healthcare practice wants more patients, butat cost? Patient Acquisition Cost (PAC) is the total money spent to attract a new patient. From digital ads to staff salaries, every rupee adds up—yet many clinics fail to track it. A high PAC can shrink profits, making growth unsustainable.
Why does it matter? Knowing your PAC helps cut unnecessary expenses while maximizing patient inflow. The formula is simple:
PAC = Total Marketing and Sales Expenses / Number of New Patients Acquired.
In this guide, we’ll show you how to calculate, analyze, and reduce PAC for long-term success.
What Exactly is Patient Acquisition Cost (PAC)?
Patient Acquisition Cost (PAC) is the total expense a clinic, hospital, or healthcare business incurs to attract a new patient. It includes marketing costs, advertising spend, staff salaries, and operational expenses tied to patient onboarding.
A high PAC eats into profits, making it harder for healthcare providers to grow. If you’re spending more to acquire patients than they contribute over time, your business risks financial instability.
The key is to reduce PAC strategically—by improving organic reach, optimizing marketing efforts, and enhancing patient retention—without sacrificing quality care.
Formula to Calculate Patient Acquisition Cost
The Patient Acquisition Cost (PAC) formula is:
“Total Marketing & Sales Expenses/New Patients Acquired”
This helps clinics, hospitals, and healthcare businesses understand how much they spend to bring in each new patient.
Key Cost Factors in PAC Calculation
- Marketing & Advertising—Digital ads, SEO, social media, offline promotions.
- Sales & Consultation Expenses—Staff salaries, patient inquiry handling.
- Administrative Costs—CRM tools, call center operations, onboarding expenses.
Let’s understand by an example:
A clinic spends Rs. 30,000 per month on ads, Rs. 20,000 per month on promotions, and Rs. 30,000 per month on staff salaries and other operations. If they acquire 100 new patients, the PAC is:
Total Expense: (30,000 + 20,000 + 30,000) = Rs. 80,000
New Patients: 100
PAC = (80000/100) = Rs. 800 per patient.
So the patient acquisition cost (PAC) will be Rs 800 per patient in that month. Tracking PAC helps optimize spending and profitability.
Factors Affecting Patient Acquisition Cost
Several factors influence Patient Acquisition Cost (PAC), making it essential for healthcare businesses to track and optimize them effectively.
1. Marketing Spend—Costs associated with digital ads, performance marketing, SEO, social media marketing, paid campaigns, and offline promotions directly impact PAC. High spending with low conversions can increase acquisition costs, reducing overall profitability.
2. Operational Expenses—Staff salaries, CRM software, patient inquiry handling, and onboarding processes add to PAC. Inefficient systems or high administrative costs inflate expenses unnecessarily.
3. Conversion Rates—A well-optimized website, effective call handling, and seamless in-clinic consultations increase conversion rates, reducing PAC by turning more leads into actual patients.
4. Patient Retention & Referrals—Returning patients and word-of-mouth referrals lower PAC significantly. Happy patients bring in new ones without extra marketing costs, making retention a cost-effective growth strategy.
Industry Benchmarks: What’s a Good PAC for Healthcare?
How much should a healthcare business spend to acquire a patient? The answer varies based on industry benchmarks, location, specialty, and competition.
At Maximise Media, we have worked over 200+ healthcare clinics. Almost every wellness brand and clinic chain in Delhi NCR has worked with us. Some of the prominent clients are Pachouli, 360 Wellness, Value Wellness, and Studio 1916. Additionally, we have worked with other reputed clinic chains in the past, like Vibes Wellness and Uncover clinics.
After analyzing our previous performance and discussing multiple of our healthcare clients, we have identified a sweet spot for PAC. Here is a good PAC look like:
- For hospitals, average PAC is in the range of Rs 5,000 to Rs 15,000 per patient due to high operational costs.
- For wellness clinics & private practices, the average PAC is in the range of Rs 1,000 to Rs 3,000 per patient, depending on the specialty.
But this is not a standard but just an observation. Actual cost can fluctuate depending on these factors:
- Location: Urban clinics face higher competition, increasing PAC.
- Specialty: Niche treatments like cosmetic dermatology have a higher PAC than general care.
- Marketing Strategy: SEO and referrals reduce PAC, while paid ads increase it.
Key Industry Insights on PAC Optimization 2025
Knowing trends in patient acquisition can help healthcare providers reduce costs while increasing efficiency. Here’s how the industry is evolving:
1. Digital Marketing Drives Patient Growth:
Healthcare businesses that prioritize digital marketing—including SEO, social media, and paid ads—acquire patients at a lower cost than those relying solely on traditional marketing like print ads or billboards. A strong online presence builds trust, bringing in more organic leads and reducing dependency on expensive paid campaigns.
2. Patient Retention Lowers PAC Over Time:
The more repeat patients a clinic has, the lower the PAC. Strategies like follow-ups, personalized care reminders, and loyalty programs encourage patients to return, reducing the need for constant new patient acquisition. Word-of-mouth referrals from satisfied patients also bring in new leads at almost no extra cost.
3. AI & Automation Improve Efficiency:
Many hospitals and clinics are using AI-driven chatbots, automated appointment scheduling, and CRM systems to streamline patient acquisition. Faster response times, efficient booking systems, and data-driven marketing help reduce lead drop-offs, increasing conversion rates while keeping PAC under control.
In short, the healthcare industry is shifting towards cost-effective digital solutions and patient retention strategies to maintain sustainable growth.
Strategies to Reduce Patient Acquisition Cost (Practical Tips)
By implementing these strategies, clinics can attract more patients while keeping PAC under control, ensuring long-term profitability and growth.
1. Focus More on Organic Marketing
Instead of relying on expensive ads, invest in SEO, patient education, and high-quality blogs. Ranking higher on Google for healthcare-related queries brings in consistent organic traffic, reducing paid marketing dependency. For example, one of our clients, Orange Tree Clinic in Delhi saw over 300% organic growth in just 6 months via SEO, generating more organic leads and form submissions.
2. Enhance Patient Experience
A seamless booking system, shorter wait times, and digital convenience (telemedicine, online consultations, easy payments) improve patient satisfaction. Happy patients return and recommend the clinic, reducing the need for constant new acquisitions.
3. Referral Programs & Word-of-Mouth Marketing
Encourage existing patients to refer friends and family by offering incentives like discounted follow-ups or priority appointments. A strong reputation leads to organic growth, cutting down acquisition costs. For more its impact, offer coupons, discounts on next treatment, etc.
4. Improve Conversion Rates
An optimized website, user-friendly landing pages, and clear appointment booking options ensure that potential patients don’t drop off before scheduling a visit. Faster response times on calls and inquiries also boost conversion rates. At Maximise Media, we integrate CRMs and instant email notifications to quickly remind the sales team about new leads and patient form submission. On landing pages, we keep the CTA button in prominent positions, making it easier for form submission.
5. Data-Driven Marketing Approach
Using analytics to track ad performance, patient demographics, and conversion trends helps refine marketing strategies. Eliminate wasteful spending on underperforming campaigns and focus on channels that bring in high-quality leads at a lower cost. For example, our performance marketing teams keep tracking the ad campaigns, eliminating non-relevant targeting, ad creatives, and high-CPC keywords. As a result, at Maximise Media, we have a consistent average ROAS on Google Ads and Meta Ads over 5X and goes up to 12X returns.
Common Mistakes in PAC Calculation (How to Avoid Them)
Many healthcare providers miscalculate Patient Acquisition Cost (PAC), leading to budget mismanagement and profit loss. Here are the most common mistakes and how to fix them:
1. Ignoring Hidden Costs
Many clinics only count marketing expenses but overlook admin costs, CRM software, patient onboarding, and staff salaries—all of which impact PAC. Solution: Track every expense involved in acquiring a patient for an accurate calculation.
2. Confusing Walk-ins & Lead Costs with PAC
Walk-in patients and marketing-generated leads are not the same as acquired patients. If a clinic spends ₹50,000 on marketing but only converts 50 out of 200 leads, PAC should be calculated based on converted patients, not just inquiries. Solution: Always divide total acquisition costs by actual new patients, not total leads or walk-ins.
3. Relying Only on Paid Ads
Running paid campaigns is not a sustainable solution and can hurt your clinic in the long run. Paid advertising can skyrocket PAC if not balanced with organic strategies like SEO, patient education content, and referral programs. Solution: Invest in long-term organic growth to reduce dependence on paid campaigns.
4. Not Tracking Conversion Rates & Patient Lifetime Value (LTV)
A low conversion rate means marketing money is wasted on leads that never book an appointment. Additionally, focusing only on first-time visits without considering LTV (repeat visits, referrals, upselling services) leads to miscalculated PAC. Solution: Optimize the website, booking systems, and follow-ups to improve conversions and calculate PAC with LTV in mind.
How does Maximise Media Helps to Lower Your PAC?
Are you roaming around in urgency of lowering your PAC? Have you tested multiple agencies but tired of finding the right one for you? It’s time to connect with the Maximise Media team.
We’re the best digital marketing agency in Delhi NCR, when it comes to working in the healthcare niche. Historically, we have worked with over 500+ brands, and out of them, 200+ are healthcare professionals, clinics, wellness centers, and hospitals.
Here is how we help you in reducing PAC value:
- Our performance marketing services help you get low cost conversion rates, resulting in a reduction in overall expense.
- We help you rank on top search terms related to your business in Google with our SEO services, resulting in organic growth in leads, directly reducing paid ad expenses.
- We streamline lead flow with CRMs to ensure the patient experience is smooth, resulting in a higher retention rate in the clinic.
- Our social media marketing services help you connect with a highly targeted audience, resulting in more engagement and inquiries.
Since 2025 and upcoming time are dominated by online advertising and growth, Maximise Media’s complete digital marketing solutions help medical practitioners drastically reduce the overall PAC value of clinics.
Still have doubts or are interested in learning how we can help you lower your overall patient acquisition cost? Let’s hop on a quick call or chat to discuss. Connect with our consultant now to cut PAC by 30%!