...The big thing is. Stop being surprised. Treat it like speed dating. Treat it like a video game that requires a lot of grinding against a bad RNG. Just keep getting offers and moving on. Don't be hurt. Don't be excited. Don't "I know this is the one".
Precisely.
Some job offers are low since the owner doc is just way out of touch with what compensation is or has never had an associate. Others are low since it's a saturated/desirable area, so they will find a local doc/resident who will take it. Others are low because they are a low life. Some are totally made up on SDN or in rumors and who knows why? Others are reasonable. Others are good (usually because they want someone well-trained or it's a tough area to recruit/retain).
It is almost certainly NOT true that they lose money the first year as a whole (unless they don't have enough patients and/or the associate produces very little or takes a ton of time off). Any practice hiring should have enough patient volume to profit from the associate. That said, they still have many legit concerns, esp with hires fresh out of residency:
-does this associate know anything about billing and coding... profitable quick treatments for common pod issues, or willl they need 'babysitting'?
-will they be a personality fit with the patients and the staff? friendly? confident? professional? not creepy? not sloppy? (can't be taken for granted)
-will they show up? on time? stay on schedule? keep up on notes and billing? (happens a ton that they DON'T do any/all of that)
-will they be efficient and productive in $ terms? Will they take an hour to see new patients and not even offer them a procedure/DME... or worse, do proc/DME that clearly needed a prior auth and won't get paid? (happens a LOT with new grads)
The 'speed dating' analogy is a great way to look at the job search. Some jobs are no way (crap office, not enough pts, $ is bad, etc), some are fair, some are good fit at first sight.. so explore those further and shadow the doc(s) at work as much as you can. I always took the approach of figuring out if I liked the office, pt/refer mix, doc(s), location, etc... then seeing if the money made sense at the end of the interaction/visit. I also think it's 100% pointless to talk money on phone/email if you've never set foot in the office and seen it in action during clinic. A lot of young - and not so young - DPMs take what I think are horrible jobs since they like the location (hometown, etc) or the money (esp base) was the best they'd seen or their partner had a job/training in that area and they had to take whatever they could get... but knowing or over-valuing those things up front will take away your ability to look objectively at the whole picture. Some people even take jobs sight unseen (zoom interview, visit on a day office is closed, etc) or take a loan to buy a house without working a day on the job... again, crazy to me, but people do it.
As for the collections and the math, an office should lose for probably 6mo max on a new associate (assume they pay them ~$150k of base+benefits for easy math, so 12.5k/mo or
625/day per 20d/month... and any bonus won't kick in until that's covered). Now, an associate gross can bring in roughly:
-150/day in first month (no collections in yet besides some copays and maybe a bit of OTC on 5-10pts/day)
-250/day in second month (trickle collections from 1st month, a few more copays + OTC since 10pt/day)
-350/day in third month (now they are starting to get some payments in from services done 1st and 2nd months, plus more copays at maybe 10-15pt/day)
-1200-1500+/day month 4 and on (now with 15pt/day $100/visit, they will cover their $625/d of base+benefits even if overhead was 55-60%... eventually they gross a lot more and should get bonus if they can increase their pt load and/or per pt $ further)
...in reality the "break even" is more likely to be around 6mo mark since the owner/hiring DPM will count one-time expenses like hospitals, PHOs, malprac, dues, uniforms, licensing, organizations, etc as happening at the beginning and not per month (as they probably should view it). they also have to offset the heavy losses in the first couple months (although those are also offset in months after whatever time the doc leaves with straggler collections $ that keep arriving). Either way, 4-6mo is the tip point in most contracts (or at least it should be) unless the office is not busy enough to hire or the associate totally sucks. Offices with better payers or more patient volume (should) pay more, others will try to pay less. It sometimes gets back to that owner's choice on creating setup of minimal staff/services and lower pt volumes/collections... vs higher staff/overhead and higher volume/collections.
The initial loss on a hire comes even for big group + exp doc hire, though... I would assume my current group lost money on me for about 3+ months even though we both held our end: they had plenty of patients, I saw 10+ from day 1, marketed myself and met PCPs, trained staff to improve efficiency, and grew rapidly to 15-20+ per day with good payers, started doing surgery asap. Even if it all works out, the employer always has a risk just due to the inevitable lag on collections and the lag until I'm doing surgery and full services... and any sign/relocate bonus they may give. You have to understand on how the risk is very high on a new grad, even with the best interview day or from the most proven program. My first or second job likely lost money on me for many months (4-6mo+). Anyone can talk the talk. Saying how you are going to do a lot of surgery or take call or do complex stuff helps patients yet matters little to PP (since that doesn't generate much income for them); they want to hear more of how you can manage patient flow, code well (or at least will study hard to learn asap), offer procedures and DME, and mainly how you are likable to patients and staff. Then, you get to prove you can do exactly that. GL