Mohs overhead

[mohderm]

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While I realize there are many variables in this question such as sq ft of office, location, lease term, etc.

For those currently in private practice, do you have an idea of what % of your overhead goes to rent?

 

[Member1]

I am interested in this as well, sounds like your considering starting your own practice mohderm. I'm sure there is tremendous variability in expensive, overhead etc, it would be nice to hear some numbers to get a rough idea.

 

[Balderdash]

While I realize there are many variables in this question such as sq ft of office, location, lease term, etc.

For those currently in private practice, do you have an idea of what % of your overhead goes to rent?

Closest I can approximate is that overall overhead runs about 50% but that's based on one source. I think you'll find a wide wide spectrum on overhead and rent.

Best way to venture a guess is the doc working late hours who is unhappy has too much overhead, the one working less and happy with his life might have low/no overhead

 

[asmallchild]

While I realize there are many variables in this question such as sq ft of office, location, lease term, etc.

For those currently in private practice, do you have an idea of what % of your overhead goes to rent?

As you mentioned, too many variables to draw any sort of conclusion from the answers you'll receive.

My estimated % of overhead that goes to rent is ~40%.

Variables to consider:
- What does the % mean? The % for an established dermatologist might not be equivalent to the % for one trying to get established
- I'm in a group with multiple offices. How is the overhead split between these places?
- large sq ft offices vs smaller offices
- overhead is split amongst multiple providers/physicians
- some are in desirable locations, some not so much
- office furnishings are average to below average in some offices, above average in others
- are you including a split to the office for cosmetic patients? In-house pathology? Mohs lab? Mohs waiting room?

In the end, I think this is a number that you should have access to. I would ask for a breakdown of the actual numbers themselves. I noticed that as my collections increased, so did my allocation for overhead. The actual numbers are more helpful than a % IMO. It's also one of the reasons I wouldn't feel comfortable with a pure % of collections contract when immediately starting with a group.

 

[reno911]

~50% is a reasonable answer, but it's not particularly useful, because as mentioned, circumstances and situations are so varied.

 

[MOHS_01]

Echo....

Percentage overhead figures are generally not very helpful as medical practice income statements are really like making sausage. My rent is high relative to my general dermatology peers, but my percentage is lower thanks to a higher numerator.

You should think about rent as an absolute cost more than a relative one; determine the amount of square footage that you will actually utilize and the cost per sq ft... and then make the relative burden from that as small as you can. The two ways to accomplish this is to either decrease your footprint or increase your revenues.

Really, though, if you are joining a group all of this math goes out the window as you are joining a team... and have to play by team rules.