overhead

[copacetic]

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im hearing figures of like 180K in private practice. does a number like that include overhead, or is it before overhead? and if it doesn't include overhead, what is a guesstimation of what overhead would be?

 

[psm1776]

I don't think it includes over head - overhead would include rent (depending on location/state - +1,200 per month), phone, utilities and malpractice insurance (the most expensive of all) - there are pros and cons to private practice(solo versus working in a group) - some make out better than others, depending on the type of practice. It also depends of the ratio of types of patients - medicare, insurance, self pay.

I think most folks start out out with a mixed private practice/hospital based then phase out working in a hospital once they build a patient base. I think (I can't remember where I heard this) it can take upwards of 10 years to build a solid F/T private practice.

 

[Therapist4Chnge]

I think most folks start out out with a mixed private practice/hospital based then phase out working in a hospital once they build a patient base.

This is the most common approach. "Overhead" is a general term that includes "Hard" (rent, insurance, etc) and "Soft" (advertising, upgrades, etc)....all of which need to be considered when looking to start a private practice. One of the challenges of a PP is having a proper business plan, as many PPs fail in the first year because they were not properly prepared.

I think (I can't remember where I heard this) it can take upwards of 10 years to build a solid F/T private practice.

It really depends on the location, specialty, insurance options, size, etc. Some people can have a practice up and running in <2 years, while others will take significantly more time, and even then will be barely breaking even if they do not do the proper planning.

Most professionals don't have direct experience in these areas, and often seek outside support to get things up and running. Part of my future work will be spend doing exactly this for people, so I can help them avoid being part of that % that fail miserably in their PP attempt.

 

[michaelrack]

im hearing figures of like 180K in private practice. does a number like that include overhead, or is it before overhead? and if it doesn't include overhead, what is a guesstimation of what overhead would be?

180K is a typical salary for a psychiatrist. For those in their own private practice, it is the "profits" after overhead has been paid for.

 

[michaelrack]

I I think (I can't remember where I heard this) it can take upwards of 10 years to build a solid F/T private practice.

It shouldn't take more than 2-2.5 years to do this.

 

[bipolardoc]

im hearing figures of like 180K in private practice. does a number like that include overhead, or is it before overhead? and if it doesn't include overhead, what is a guesstimation of what overhead would be?

You are still not even in medical school. So by the time you get in and graduated and do residency, prob 8+ years from now, with inflation and salary changes the figures you are looking at are going to be VERY different. Worry about getting into medical school and finishing a residency first. You are thinking way ahead of yourself!

 

[copacetic]

fair enough, lol

 

[michaelrack]

You are still not even in medical school. So by the time you get in and graduated and do residency, prob 8+ years from now, with inflation and salary changes the figures you are looking at are going to be VERY different. Worry about getting into medical school and finishing a residency first. You are thinking way ahead of yourself!

The figures will be about the same in 8 years, but the salary/income will be worth a lot less due to inflation.

 

[BORNagainSTDENT]

this is with charging how much per hour? the reason I ask is I am trying to figure how much the docs I met make.