Percent of collections a pathologist can expect to take home and lab director fee

[pathology12345]

Can any one in the private practice world comment on what is a reasonable percentage for the pathologist to take home from total collections or total billable units (50%? higher or lower?) as well as what is the typical lab director fee (as a % of your total lab revenue)? Should I expect to take a percentage of the professional fee as well? Thanks!

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[deleted314957]

Lots of variables here but your AP collections should be well over 50%, at least when I was in the biz.

Re: director fee; you get what you negotiate.

Re: PC of CP; you bill non medicare patients and it is your money less what you pay your billing service.

Mind you, this is based on my PP experience which is dated.

 

[octopusprime]

Can any one in the private practice world comment on what is a reasonable percentage for the pathologist to take home from total collections or total billable units (50%? higher or lower?) as well as what is the typical lab director fee (as a % of your total lab revenue)? Should I expect to take a percentage of the professional fee as well? Thanks!

I think 50% would be generous in today's market. Our net collections range 40-45%, depending on the month, avg for the year is somewhere in between those numbers. Depends on how accurate your base pricing is.
My take home is an even partner's share of the net collections.
Lab director fee is negotiated every few years with the hospital.

 

[pathology12345]

I think 50% would be generous in today's market. Our net collections range 40-45%, depending on the month, avg for the year is somewhere in between those numbers. Depends on how accurate your base pricing is.
My take home is an even partner's share of the net collections.
Lab director fee is negotiated every few years with the hospital.

As an independent contractor for a POL, what would be a reasonable percentage of the revenue the pathologist can expect to take home? i.e. a percentage of the global component revenue? Or only a percentage of the professional component? An office has offered me 50% of the professional component only and this seems to be low.

 

[octopusprime]

As an independent contractor for a POL, what would be a reasonable percentage of the revenue the pathologist can expect to take home? i.e. a percentage of the global component revenue? Or only a percentage of the professional component? An office has offered me 50% of the professional component only and this seems to be low.

depends on what kind of case mix; might need someone like Dave to chime in (he does GI only) but 50% of a hefty volume of derm or GI or GU could be fine financially...depends on volume and if you're OK handing over 1/2 your billing (despite maintaining 100% of the liability) to a dermatologist, urologist or gastro.

 

[Spikebd]

As an independent contractor for a POL, what would be a reasonable percentage of the revenue the pathologist can expect to take home? i.e. a percentage of the global component revenue? Or only a percentage of the professional component? An office has offered me 50% of the professional component only and this seems to be low.

50% of the professional component is robbery and pathologists should refuse to partake in these schemes. Stand up for yourselves, guys. Pathetic

 

[coroner]

what is a reasonable percentage for the pathologist to take home from total collections or total billable units (50%? higher or lower?) as well as what is the typical lab director fee (as a % of your total lab revenue)? Should I expect to take a percentage of the professional fee as well?

I'm assuming by "professional fee" you mean professional component? If so, it is inclusive of your "total collections and billable units". So the answer is no, because the professional component is part of what you're already collecting/billing.

Btw, excellent patience, joining over 6 years ago before making your first post...

 

[coroner]

An office has offered me 50% of the professional component only and this seems to be low.

50% of the professional component is robbery and pathologists should refuse to partake in these schemes. Stand up for yourselves, guys. Pathetic

Hahaha...50% is actually HIGH if you're employed by a physician-owned lab. It's not about what we think deserve, it's about what we can get which are two different things. Our feelings about our worth are irrelevant in the scale of economics of supply & demand. And, it should come as no surprise those scales are tipped in favor of the POL's. One pathologist "standing up" and saying "no", because they feel underpaid, just means they'll find the next man down the line who'll say, "yes"...and there's plenty of them who are willing to do that.

 

[octopusprime]

"50% of your professional fee", though likely way more, is certainly within the realm of what people expect when they are employed at a hospital, corporate lab, etc. And while those funds inevitably end up in the pockets of administrators/corporation, every other employee is in the same boat, and they contribute to funding other ventures / aspects of the hospital, company, etc [which makes me sick, which is why i'm not an employed physician], but "50% of your professional fee" confiscated off the top by a dermatologist, urologist, gastro, etc, simply for them allowing you to work there is at best a kickback, at worst extortion. The market allows it because people don't care about the profession, they care about "getting theirs"-- making good money, having no call, and free weekends. Taking a stand certainly means the next person down the line will take the job, but it doesn't mean you shouldn't do it, or that there aren't better offers out there.

 

[WEBB PINKERTON]

Take advantage of the covid 19 market and demand more. This isn't 2019 any more. They are paying dudes 15 bucks an hour to work at white castle. Now is the time to take a stand. For the first time I have seen in many years, there might actually not be another pathologist to take your place.

 

[LADoc00]

Can any one in the private practice world comment on what is a reasonable percentage for the pathologist to take home from total collections or total billable units (50%? higher or lower?) as well as what is the typical lab director fee (as a % of your total lab revenue)? Should I expect to take a percentage of the professional fee as well? Thanks!

Im trying to nail down precisely what the ? is so I can answer in a more definitive fashion.

Do you mean what % of say Medicare fee schedule if you were billing and paying overhead you should reasonably expect to earn?

Stuff I would need know:
Do you own the lab or does someone else? If you dont own it, is is owned by a NFP hospital, FP hospital or private investor/clinician??
What else does the lab do in terms of CP that you could directly receive income from?
Do you need to be on call? Meaning is this lab open 24-7?
Are you paying your own malpractice?

 

[Spikebd]

Take advantage of the covid 19 market and demand more. This isn't 2019 any more. They are paying dudes 15 bucks an hour to work at white castle. Now is the time to take a stand. For the first time I have seen in many years, there might actually not be another pathologist to take your place.

At some point in the very near future, pathologists will say “screw it” and take the White Castle job.

 

[WEBB PINKERTON]

At some point in the very near future, pathologists will say “screw it” and take the White Castle job.

They better hope their sense of smell disappeared from all the formalin and xylene exposure. White Castle is rough.

 

[Med Director New England]

50% of the professional component is robbery and pathologists should refuse to partake in these schemes. Stand up for yourselves, guys. Pathetic

What if that’s the best offer they have?

 

[KeratinPearls]

What if that’s the best offer they have?

Clinicians own us.

“Absolute power corrupts absolutely" means that when a person has power over others (or things) it has a tendency to corrupt them.

 

[Spikebd]

What if that’s the best offer they have?

The salary for a Trader Joe’s manager is quickly approaching the level of a junior pathologist (especially academics). Trader Joe’s has its own stress, I’m sure. At least they aren’t being held personally liable for potentially millions of dollars for a diagnosis they were paid $20 for.

 

[gbwillner]

Im trying to nail down precisely what the ? is so I can answer in a more definitive fashion.

Do you mean what % of say Medicare fee schedule if you were billing and paying overhead you should reasonably expect to earn?

Stuff I would need know:
Do you own the lab or does someone else? If you dont own it, is is owned by a NFP hospital, FP hospital or private investor/clinician??
What else does the lab do in terms of CP that you could directly receive income from?
Do you need to be on call? Meaning is this lab open 24-7?
Are you paying your own malpractice?

Agree.

As usual lots of doom and gloom, but to get to a real answer to this question it is important to know what you are bringing to the table and what the other party is bringing to the table. Also relevant are what services are being rendered. "CLIA Lab Director" can mean something substantial or something trivial, depending on what services are being performed. Are you approving SOPs and reviewing performance for the lab, or are you there daily running operations? One of these nets you $20-50K, the other like 5 times that.

As for professional take home- who is the counterparty here? Is it your group, for whom you are an employee; is it the hospital or GI group who is trying to negotiate revenue from your services?

 

[Med Director New England]

The salary for a Trader Joe’s manager is quickly approaching the level of a junior pathologist (especially academics). Trader Joe’s has its own stress, I’m sure. At least they aren’t being held personally liable for potentially millions of dollars for a diagnosis they were paid $20 for.

Or you could always get a commercial drivers license and see the country driving an 18 wheeler.

Have you heard some of the salaries and sign on bonuses truckers are snagging

 

[AZpath]

As an independent contractor for a POL, what would be a reasonable percentage of the revenue the pathologist can expect to take home? i.e. a percentage of the global component revenue? Or only a percentage of the professional component? An office has offered me 50% of the professional component only and this seems to be low.

Yes it sounds low to me too. It depends on the complexity and therefore your ability to handle the volume.

50% of the collected revenue may be bad or OK.

It depends.

What do they really collect?

How much will end up in your pocket at the end of the day is what matters.

Otherwise the offer is meaningless.

The question to POL is how is translating to current income based on likely volume.

Then you have subtract malpractice and other expenses.

 

[AZpath]

Or you could always get a commercial drivers license and see the country driving an 18 wheeler.

Have you heard some of the salaries and sign on bonuses truckers are snagging

Agree.

As usual lots of doom and gloom, but to get to a real answer to this question it is important to know what you are bringing to the table and what the other party is bringing to the table. Also relevant are what services are being rendered. "CLIA Lab Director" can mean something substantial or something trivial, depending on what services are being performed. Are you approving SOPs and reviewing performance for the lab, or are you there daily running operations? One of these nets you $20-50K, the other like 5 times that.

As for professional take home- who is the counterparty here? Is it your group, for whom you are an employee; is it the hospital or GI group who is trying to negotiate revenue from your services?

If your truly providing daily management it should be worth a lot. That's a bit different than the typical director role.
Lab managers can do a traveler gig and make over 200K to manage a lab these days.

 

[derm12]

Anyone have insight for dermpath?

In particular, working for a private practice and reading their dermpath. I've heard of a percent collections based (unsure of what percent is actually fair) and also have heard of getting paid a certain amount per case. Appreciate anybody who has experience with any of this.

Thanks!

 

[LADoc00]

Folks you need to start charging a flat monthly retainer. I do this now almost exclusively as it insulates me from the office closing for a week, slow periods, COVID shutdowns etc.

Figure out what your time is worth and say pay me 25000+ whatever per month M-F 9-4 to do work period. Negotiate some vacation as well.

Tell them you want to be paid in advance by the 5th of each month.

And just be done with fee splitting. Let them eat any insurance drops. If they try to lower your pay down the road, simply threaten to quit and move on.