Private Practice questions

[AZPsychDoc]

Hi everyone. I read through a lot of the previous threads but didn't exactly find what I was looking for. I currently work as an independent contractor in a practice group with a 60 (me)/40 fee split-standard, right?

Well when I first interviewed with this place I was told that 2nd yr is "awesome" because "it goes to 80/20 which would make it impossible to leave". I was looking forward to this fee split change and did not have anything in writing (dumb, I know). So here I am close to a year and the contract says 70/30- still good but not as "promised". In order to get the 70/30 split I must bring in $54,000 in "sales" every 6 months or pay the company back 40% of the difference. We are located in an area where most people utilize their insurance and some even complain about a $40 copay. The building is older and the set up is definitely not fancy enough to attract private pay clients who want anonymity or like a waterfall in the waiting area (ha but also serious).

I am trying to decide if it is worth it for me to remain at this place ("rent" is $2700 a month) or if I would be better of renting space elsewhere and doing my own thing. For the fee split the practice provides: quickdoc EMR, phone, receptionist, an office, and insurance billing. All the clients I have now I had referred to me or got on my own...being a part of this company does not get me clients so that should not be considered.
I have some private pay clients but mostly all insurance. The lowest reimbursement rate is $100.


Questions:
1- How much do clinicians avg on overhead in just renting a space from an office building/other provider? EMR? File folder storage?
2- How much do billing agencies charge (10-15%?)
3- Am I missing something here or does it seem like I would make more branching out on my own?

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[erg923]

I really dont know those answers, but you will always make more working for yourself, at least in the long run.

 

[OneNeuroDoctor]

I almost signed up for a similar contract position but I was offered employment at a Psychiatric Hospital. It sounded too good to be true and the owner lived in the West Coast and was back and forth as needed. I would make much more the second year. Many of the contractors had other jobs to rely on as steady income. The monthly office fee seems high to me. Hope it works out for you.

 

[Doctor Eliza]

You should talk to local psychologists. Many of these things vary from place to place. For example, $100 is one of the highest reimbursement rates I receive, not lowest, so it is harder to get a feel for what your distribution of fees might be like. I also don't know the going rate for rent and the demand for services in your area.

Also, do you want secretarial support? How many clients do you want to see per week?

Also, are there other local PP with a better arrangement? Could you do that instead of taking the plunge into solo practice?

Dr. E

 

[LivingOffLoans]

In many parts of the northeast, the industry standard for office space is $10 per hour, so if you lived here and wanted to see 25 patients a week, that's $1000 a month. Depending how many hours you want to practice weekly, and in what city you want to open shop, it may be cheaper to just rent by the month.

I'm not sure how much billing agencies charge, but I think that could add up too.

I keep a document that I update regularly with information like this, and based on what I've put together, my take-home pay (after overhead, taxes, insurance, CE credits, etc...) was about 55% of my gross income. Maybe I'm over-shooting, I don't know for sure just yet. Either way, the payout still seemed better to me than working for someone else. I'm hoping that when I get to that point I can also offer high-end niche services to supplement my therapy earnings, such as corporate employee relations trainings, group psychotherapy, supervision for therapists, etc... Just adding two or three of those sort of things to your service list can really boost your potential earnings.