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10% lol
Yeah, you can't pay out dollars twice is the problem; mid-levels generate the same (possibly more) cost structure per unit volume than an MD does, yet the dollars in are contractually less. For example, let's say that an experienced mid-level is 80% as efficient as an experienced doc. They're receiving 80% of the compensation from payers, so that's 64% of the dollars in per unit time. If the place is a well oiled machine, let's say overhead for the docs sits at 40%, 45-50% overall once factoring in mid-levels. The dollars just aren't there, I'm afraid, which is why many mid-level heavy practices gain the reputation of being biopsy mills..... gotta make that money up somehow -- or have a secondary gain (allowing the MD to focus more on what they prefer to do, be that path or Mohs or cosmetics, whatever).Ha, not even, I used to work for a PE-owned group. It may start at 10% (which is still absurdly low) but they will drive that % lower and lower in the name of "we are losing money by paying the midlevels and the physicians at the same time"
The only reason to sell to PE is if you are retiring, moving, or terminal.... or your practice is not making any money and you're looking for a lifeline / bailout. That's it.It’s crap like that that makes me never want to sell to PE
Can anyone else share their experiences with % collections from PAs? I had an offer from a PE-backed group for 6% (revised up from 0 after I said wtf), and another offer of 30% of PA collections from a different practice. I have no way to gauge what is a good number. (Note: the PA would only be seeing my follow ups).
I have interviewed with a large multspecialty private group that had dermatologists. The practice group wide was any midlevel hired was the sole profit/expense of the doc that wanted them. They were billed a share of the overhead and all the rvus they generated got credited to the doc who was then responsible to pay the midlevel out of their own money. That’s likely a rare situation
It is like that for every specialty (not only derm) in that private group?I have interviewed with a large multspecialty private group that had dermatologists. The practice group wide was any midlevel hired was the sole profit/expense of the doc that wanted them. They were billed a share of the overhead and all the rvus they generated got credited to the doc who was then responsible to pay the midlevel out of their own money. That’s likely a rare situation
YesIt is like that for every specialty (not only derm) in that private group?
As an employed physician in private equity you may be asked to supervise a PA and likely you will have no part in the hiring process. You will take the liability. You will not be their boss. And you will be paid substantially less than 10%. I’m not aware of any PE MD being compensated 10% of PA collections. The norm would be closer to 5%. PAs are revenue generating and will often be given preference over MDs in scheduling and treatment. Especially if they’ve been with the practice for years. The best analogy that I can think of is imagine how a hospital values and treats a floor nurse who’s been with the company for 20 years versus a new intern.
Five percent would have been an improvement in my case. The PE group offered a flat 7k per mid level supervised. Mind you the mid levels at this practice collect anywhere from 500k to 700k+ per year.