Contract

[Phipps]

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Hi All: I was wondering about applying to a contractor position at a group practice. Can anyone here to about pros and cons? Are psychologists in a group practice (unless you onw...) payed according to billeable hours? Any and all leads are welcome. TIA

 

[PsyDr]

It’s usually paid based upon productivity. But you are responsible for:

1) malpractice insurance
2) computers
3) hippa compliant email
4) hippa complaint phone and text
5) fax
6) health insurance
7) own occupation disability insurance
8) retirement contributions, whcih you should really consider a SEP for
9) if you’re wise you’ll form your own LLC and have the contract between the practice and your LLC, not you the person
10) Both halves of your social security taxes; so like $16k for your first $100k.

 

[deleted343839]

The main advantage of a contract position is flexibility. One of the main disadvantages is being 100% responsible for costs that are often shared with a W-2 employer, things like employment taxes, health insurance, retirement, etc. Whether it's a good fit for you kind of depends on what you're looking for, so perhaps you could share more information about your goals and what's potentially on offer from this practice.

 

[Doctor Eliza]

Typically, you are paid a percentage of what you bill. In my area, it’s usually a 60-40 split, but I have friends in other locations who get 70-30. It’s a good way to dip your toe into the world of private practice, but you’ll never get rich this way.

For a variety of reasons, I’ve worked as a contractor for 10 years (yikes! That went quickly!) If you have more specific questions, I’m happy to answer.

 

[PsyDr]

Never taken less than 75/25. But without being braggadocious, I’m a rainmaker.

 

[Phipps]

Thank you all. I was trying to get a better sense of pros/cons since I am currently salaried with a high volume of patients and lower retention rate. My salary is kinda low and I feel like productivity is most important for my company. I have up to five new patients every week and about 110 different patients scheduled every months. I am sort of tired and was thinking about how to improve my current situation, Private practice came to mind b/c of the low retention rate I have and b/c I feel confident apout what I am doing.

 

[foreverbull]

Group practice contracting can be a good way to dip a toe into private practice without risking a lot of money upfront doing your own billing and renting your own office (although some groups will exploit early career psychs and not even provide an office but be a “remote” group that only provides billing and referrals). I would say groups are a good option temporarily until one feels ready to go out on one’s own....unless the pay ratio becomes more favorable over time. Some folks stay permanently when they negotiate better ratios.

One other advantage: opportunity for consulting/socializing with colleagues, but that really depends on the group setup.

Main disadvantages: pay ratio, still have to pay for several business expenses on your own.

 

[Sanman]

It’s usually paid based upon productivity. But you are responsible for:

1) malpractice insurance
2) computers
3) hippa compliant email
4) hippa complaint phone and text
5) fax
6) health insurance
7) own occupation disability insurance
8) retirement contributions, whcih you should really consider a SEP for
9) if you’re wise you’ll form your own LLC and have the contract between the practice and your LLC, not you the person
10) Both halves of your social security taxes; so like $16k for your first $100k.

Good advice here so far, When comparing splits are pay in general, ask what the group is providing.

Most important for a younger clinician, are they providing a steady stream of referrals or is this more of a office and overhead sharing arrangement. How about office space (type, hours available, dedicated or shard office, etc), administrative support, business cards, and all of the above mentioned things. My groups have provided business cards, admin support, and company email in the past to contractors. Weigh your needs against your percentage/pay.

 

[Sanman]

Never taken less than 75/25. But without being braggadocious, I’m a rainmaker.

rain·mak·er
/ˈrānˌmākər/
noun
noun: rainmaker; plural noun: rainmakers; noun: rain-maker; plural noun: rain-makers

1. 
   a person who attempts to cause rain to fall, either by rituals or by a scientific technique such as seeding clouds with crystals.
2. 
   informal•North American
   a person who generates income for a business or organization by brokering deals or attracting clients or funds.
   
   

Do you know any good rain dances? The crops are looking a little dry this year.

 

[erg923]

But without being braggadocious, I’m a rainmaker.

Like this, Son!!!