Private Practice ODs

[opto2020]

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I was wondering if it would be fair to say that private practice ODs make about 30-40% of their gross profit?

How much should you allow for employees' salaries, working capital-rent, equipment, utilities, etc?

Thank you in advance.

 

[eyestrain]

I think 28-33% may be a little more realistic.

 

[KHE]

I was wondering if it would be fair to say that private practice ODs make about 30-40% of their gross profit?

How much should you allow for employees' salaries, working capital-rent, equipment, utilities, etc?

Thank you in advance.

This is a tough question because there are just too many variables....

Most solo practices that are "up and running" net between 25 and 33% on average.

Practices that are just starting out will net for the doctor a lot less than that.

Practices that are multi doctor will net much more than 33%.

 

[Mixin Marc]

This is a tough question because there are just too many variables....

Most solo practices that are "up and running" net between 25 and 33% on average.

Practices that are just starting out will net for the doctor a lot less than that.

Practices that are multi doctor will net much more than 33%.

What causes multi-doctor practices to net more than solo practices?

 

[eyestrain]

What causes multi-doctor practices to net more than solo practices?

I believe the term is economy of scale. Simply put, if you add a second doctor, you can double your output without doubling your expenses. Things like rent, electricity, etc aren't going to double with a second doctor.

 

[KHE]

I believe the term is economy of scale. Simply put, if you add a second doctor, you can double your output without doubling your expenses. Things like rent, electricity, etc aren't going to double with a second doctor.

It's a bit more complicated than that, but that's the basic premise....economy of scale.

 

[blysssful]

For those of you who are practicing now, are you in private or public? If you have tried both, which do you prefer, and why?

 

[eyestrain]

For those of you who are practicing now, are you in private or public? If you have tried both, which do you prefer, and why?

I assume by public you meant corporate. Yes, I've done both, but I only did corporate because I had to and I'll be done with it in a couple months. I hate every second of it, by the way.

 

[IndianaOD]

For those of you who are practicing now, are you in private or public? If you have tried both, which do you prefer, and why?

Private. I refused to consider corporate.