How to Reduce Group's BLOATING Overhead Cost

[gaspusher]

When I first started the group, our group (included both the expenses we share as a group and individual) expenses were 5-6%. It is now 9-10%. We obviously need to sit with the accountant and figure out why, but has anyone else fallen for this raising overhead expenses and fixed the problem.

From what I understand:

5%: golden, an optimally run anesthesia group
10%: should absolutely be no more than this, any more is extremely inefficient
15%: unacceptable, you aren't running an efficient practice or someone is doing something fishy...
20% or more: better off selling to an ACM

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[aneftp]

What exactly is your overhead?. My former place, We paid our office lady 80k but than she stole 300k twice. lol

Crna bonus was in December as Xmas gift.
Country club holiday party was $5000 set aside.

Plus the billing expenses/company.

Not much else.

Or are you talking about expenses outside what I’m discussing?

We all had 100k in pretax expenses each person to use to pay for healthcare , retirement accounts , cme etc. are you talking about those type of expenses?

 

[DirtDocMD]

Basically same questions as Aneftp. What do you consider “overhead”?? Does that include CME money and healthcare, or are we just talking billing/credentialing/payroll admin?? Do you have schedulers, as well??

 

[Dr. Rude]

Basically same questions as Aneftp. What do you consider “overhead”?? Does that include CME money and healthcare, or are we just talking billing/credentialing/payroll admin?? Do you have schedulers, as well??

Don't forget HR, legal, and accounting.