Student Doctor Network Forums - View Single Post - I Just don't understand optometry profession...

Member 164036 · 05-25-2012, 01:12 PM

$250,000 from Wal-mart. That's funny. Made my day.

I'm in private practice. I made $510,400 last year. Absolutely true statement. Look at my Officemate software. That's exactly what I billed.

But wait. That's what I billed to insurance and patients. I actually got less than that since insurances are known to be a bit on the cheap side. Quite a bit less. Maybe $400,000 I actually 'made'. (estimate since I don't have the numbers in front of me).

But wait. There the overhead of running a practice. Employees ain't cheap. Like a 70% overhead. So that really leaves me with $120,000. So I made $120 grand. SWEET!

But wait, there's those pesky taxes we've talked about before ( plus any business loans and school loans). After all that, you might be left with $60,000 you actually take to the bank after 15 years in practice.

Point being when someone tells you what they make, it's all relative.

Did I make $510,400 or did I make $400,000? Or did I make $120,000? Or did I make $60,000?

They could be telling you 'total billed' (lots like to do that to make them self look good). It could be after practice expenses but before taxes. Could be after taxes.

That's why without seeing their actual tax returns no on can say "I know Dr. so and so makes $250,0000 last year"!

Also all the reported OD income you see in books and articles are self-reported. The AOA (back when I was a member) used to send surveys every couple of years asking you to report your income and number of pts. You don't think OD lie??

P.S. These are not my exact numbers.......but they used to be earlier in practice.

05-25-2012, 01:12 PM	#9
Member 164036 Senior Member Status: Optometrist Join Date: Aug 2007 Posts: 534	$250,000 from Wal-mart. That's funny. Made my day. I'm in private practice. I made $510,400 last year. Absolutely true statement. Look at my Officemate software. That's exactly what I billed. But wait. That's what I billed to insurance and patients. I actually got less than that since insurances are known to be a bit on the cheap side. Quite a bit less. Maybe $400,000 I actually 'made'. (estimate since I don't have the numbers in front of me). But wait. There the overhead of running a practice. Employees ain't cheap. Like a 70% overhead. So that really leaves me with $120,000. So I made $120 grand. SWEET! But wait, there's those pesky taxes we've talked about before ( plus any business loans and school loans). After all that, you might be left with $60,000 you actually take to the bank after 15 years in practice. Point being when someone tells you what they make, it's all relative. Did I make $510,400 or did I make $400,000? Or did I make $120,000? Or did I make $60,000? They could be telling you 'total billed' (lots like to do that to make them self look good). It could be after practice expenses but before taxes. Could be after taxes. That's why without seeing their actual tax returns no on can say "I know Dr. so and so makes $250,0000 last year"! Also all the reported OD income you see in books and articles are self-reported. The AOA (back when I was a member) used to send surveys every couple of years asking you to report your income and number of pts. You don't think OD lie?? P.S. These are not my exact numbers.......but they used to be earlier in practice.