I've been in private practice as the (very) junior member of a group--the other doc started the practice, his wife has been office manager, I have essentially functioned as an employee.
The practice has gone to being hospital-managed, so I'm now an independent contractor.
I met with the hospital people the other day about how the financials will work. Their idea is for me to be paid a percentage of gross collections (I'm planning to leave, so I won't be there too long).
The percentage they gave me for me to take home was 51% of gross collections. That amount of overhead seems awfully high to me, especially since the other doc's overhead is roughly 30%.
A few factors:
-I'm only in the office half days. The other half of the day I'm in the hospital as the medical director of an inpatient unit
-About 40% of my billing comes from inpatient work (ie., no overhead other than billing)
-The other guy is in the office full time and is REALLY busy
Does this seem like a reasonable amount for me to pay in overhead? I'm really not good at this sort of thing.
I don't think anyone in my small town is paying close to that. Are you in NYC?
I managed to get things worked out with the hospital. I sat down with them and we discussed the numbers--after about ninety minutes my overhead was down to 35%. It all seemed very inexact, but I'm much happier with the outcome.