What's the usual overhead percentage of your total collections in a private practice?
Is 50% reasonable? Thanks.
Is 50% reasonable? Thanks.
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Overhead expenses
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Depends on how posh an office you have, how many fad machines you buy for your office (that have little reimbursement- there are a number of expensive electrical stim devices ranging up to $40,000 for use in the office, DRS traction machines for up to $80K, etc), how efficient your staff is in performing the necessary tasks, and purchase of an expensive vs. inexpensive EMR. Our overhead at my busy practice (minus my income) is about 23%. If you equip your office with a new OEC 9800, employ a lot of staff, use a transcription service, and have expensive office space (25-35/square foot/year), buy a lot of gadgets and machines without reimbursable codes, then your office expenses may approach 50%.
Algos, that's extremely helpful. Thank you.
What's the percentage of your procedural based generated income among your total income?
Is billing expense part of your overhead?
What's the percentage of your procedural based generated income among your total income?
Is billing expense part of your overhead?
Billing is part of the overhead. I am seeing patients as either new patient visits or followups approximately 60% of my time and performing procedures approximately 40%. I have not broken down procedures vs office visits in the past few years, but prior to that, the reimbursement for performance of interventional procedures was about 5 times the reimbursement for office time per minute.
