Overhead Expenses ...

[bkpa2med]

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When people talk about how much money is generated then minus ~60% for overhead, I would like to know, what is included in that overhead? Seems like an awful lot to be that much but I don't really know what is considered overhead? I see many FP's doing well in my area, is there some "hidden" secret?😀

 

[YouDontKnowJack]

malpractice, leases, staff pay,among other things

 

[erichaj]

lease 2500 minimum
staff and staff bnefits anywhere from 8 to 10K
supplies 2000
malpractice about 1500
Medical billing 8% of gross
Phone 250

I can't remember if there is any other.
but lets just add this up.

Lets say we see 25 patients per day x 5 day x 48 weeks @ $75 dollars a patient = 450000 x .92 = 414000 div by 12 = 34500

Now lets take out the "Overhead".

34500 - 15250 (this is low because most practice have a higher overhead) = 19250 net before taxes.

This is true only if the practice is at it's optimal. Most are not for various reasons. That is why the average FP salary is around 160 to 170K.

There you go. Hope that takes the "secret" out of it for you.

 

[bkpa2med]

Thank you

 

[RuralMedicine]

lease 2500 minimum
staff and staff bnefits anywhere from 8 to 10K
supplies 2000
malpractice about 1500
Medical billing 8% of gross
Phone 250

I can't remember if there is any other.
but lets just add this up.

Are your figures over the course of a year ? or monthly. (😉 If your annual malpractice premium is <2000 I really want to know who you are using)

 

[iatrosB]

Are your figures over the course of a year ? or monthly. (😉 If your annual malpractice premium is <2000 I really want to know who you are using)

Monthly.

 

[bkpa2med]

So having 1 partner and sharing the costs will pocket you ~100k more no?

 

[RuralMedicine]

So having 1 partner and sharing the costs will pocket you ~100k more no?

It depends as some costs may be fixed but some costs can be incremental. If you have a partner and are doubling your patient volume then obviously supplies needed will increase. You may need more staff or a larger office etc. You can certainly look at it and decide where the break even vs law of diminishing returns is in terms of group size. Of course there are nonfinancial advantages and disadvantages of group and solo practices.

 

[deleted6669]

So having 1 partner and sharing the costs will pocket you ~100k more no?

more if your partner is a pa.....🙂

 

[bkpa2med]

emedpa,
Sounds great 'cause my girlfriend has 1 more year left in her PA Program lol

 

[Faebinder]

emedpa,
Sounds great 'cause my girlfriend has 1 more year left in her PA Program lol

Working with a gf or a spouse can be fatal to the relationship.... be careful.. (Especially true if one of the two has something to prove.)

 

[zippy81]

My fiance will finish PA school in August, we decided LONG ago we could never work together. Me trying to tell her what to do? Yeah right...

 

[bkpa2med]

True, I will keep that in mind lol

 

[erichaj]

Are your figures over the course of a year ? or monthly. (😉 If your annual malpractice premium is <2000 I really want to know who you are using)

That would be monthly, thats why I did the math for you. 😴

PA could be a liability. Just bring in a physician and share the costs.

No, you will not make an extra 100K with a new doc sharing the cost. But you will make most likely an extra 30 to 40 K.

don't ever work with you spouse. The divorce rate is very high. AND, Girlfriend means nothing because she may not be you girlfriend in a few months. So, be carefull making plans like that. 😍 😉 Just keeping it real.

Anyway, if you are looking at FP for money, I strongly suggest you look elswhere. Also, if you have huge student loans, look elswhere.

 

[ntubebate]

My uncle is a GP and his wife has been his office manager for... 32 years I believe? Worked with him every day of the week until 1995 when she started taking off Tuesdays and Thursdays.

I think it all depends on WHO your mate is and how your relationship fits in with your desire to practice medicine.