Quote:
Originally Posted by golfing eagles
There's a lot there to respond to, so here's the highlights:
10 years ago our nurse practitioners, between salary bonus and benefits, had a compensation package of about $130,000. And no, that is not 85% of a physician's income. We made minimal "profit" on our NPs.
I don't know where that "break even" idea came from. Primary care practices generally run at about 55% overhead, we were a bit better at 47% overhead. So individually we kept about $53K out of every $100K billed and collected (another issue). But out of that we then individually paid malpractice insurance, disability insurance, overhead insurance and taxes. So on average, a primary care physician was left with 19 cents on every dollar collected.
So on average, when you see Dr. "X" billed out $1 million and are "shocked", that translates to $900K collected, $405K after overhead and about $275K after expenses---with no benefits and no pension for retirement. This comes out to less total compensation than a police sergeant married to a high school guidance counselor in a medium sized town.
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if you were running at 47% overhead, you running a tight ship. I would have guessed an overhead of 55%-60%.
Doctoring seems to fit into the universal model of professional employment ...lawyers, consultant, engineers. If you only have 2-5 professionals and limit staff & overhead, you can make a fair living ... after that, you enter into "no man's land" while expanding. If you can reach critical mass and become a big operation, you're back to making money, but it's always seems like a tough go for the guys in the middle.
Thanks