Re: Overhead

[Guest guest]

is payroll you only or do you have staff

 

I believe it was this listserv that asked how much the “average” overhead is or patient’s seen to break even.  I hadn’t looked at this for a while so decided to look at it.  Very rough figuring.  But I took total payments for the 1st quarter divided by patients seen; that turned out to be $78.78/patient average payment and I bill mostly 99214’s. 

 Then I just looked at my expenses for the 1st quarter.  Keep in mind NJ is high rent, high malpractice state.  My total expenses was $28,805 for the quarter.  But this doesn’t include malpractice which is paid in July.  So if I add 3 months of malpractice, that is an additional  $3484 which is  $32,289. 

  I see patients in the office 4 days a week.    This represents 13 weeks but I took 1 weeks vacation in March so it’s only 12 weeks.  That would mean my office costs $2691/week or $672.75 per day to run; or 8.5 patients/day to break even.    

 Rent, payroll, insurance makes up 73% of my costs in that order.   Payroll is 22%.  And my landlord has nicely frozen my rent for past 3 years instead of the 3% increase/year that was scheduled.

 Kathy Saradarian, MDNJ 

[Guest guest]

I should do this for medical clients vs. Botox, etc. My problem is a move, and buildout at huge interest, that I can't get refi'd. But I see more medical clients than most on this list serve, avg 15/d, winter up to 22, summer down to 8. But I also do Botox/filler clients 1-10/d, which pay much better. If it wasn't for them, I'd have closed 2 years or more ago. Vanity is alive and well, my Botox from 2010-2011 doubled in income, and number of patients, with no increase in fees or overhead. This year is up 30% from that. Meanwhile, as prev stated, more and more of the medical clients want something for nothing, and can't even be coxed to pay what they have already incurred, many I know near bankruptcy themselves. Last year when I ran the insurance vs patient pay amounts, insurance had fallen by about 30% of what they pay, and patients had increased that or more.

Will run the numbers and get back to the list.

Cote

To: Sent: Friday, August 10, 2012 9:02:43 AMSubject: Overhead

I believe it was this listserv that asked how much the “average†overhead is or patient’s seen to break even. I hadn’t looked at this for a while so decided to look at it. Very rough figuring. But I took total payments for the 1st quarter divided by patients seen; that turned out to be $78.78/patient average payment and I bill mostly 99214’s.

Then I just looked at my expenses for the 1st quarter. Keep in mind NJ is high rent, high malpractice state. My total expenses was $28,805 for the quarter. But this doesn’t include malpractice which is paid in July. So if I add 3 months of malpractice, that is an additional $3484 which is $32,289.

I see patients in the office 4 days a week. This represents 13 weeks but I took 1 weeks vacation in March so it’s only 12 weeks. That would mean my office costs $2691/week or $672.75 per day to run; or 8.5 patients/day to break even.

Rent, payroll, insurance makes up 73% of my costs in that order. Payroll is 22%. And my landlord has nicely frozen my rent for past 3 years instead of the 3% increase/year that was scheduled.

Kathy Saradarian, MD

NJ

[Guest guest]

I do my own payroll but have an accountant that does the reports and double checks what Quickbooks does. One of the people on payroll is my biller and I bill inhouse. I could factor her out as “billing costs” But she also helps on the phone and messages. Oh, my first message accidentally deleted where I explained staffing. I have a part-time biller and 2 part-time receptionists who sometimes overlap hours by about 1 hour. No clinical staff. This does not include my take-home as I only take home if I exceed the 8.5 patients per day. Kathy Saradaria, MD From: [mailto: ] On Behalf Of GordonSent: Friday, August 10, 2012 12:08 PMTo: Subject: Re: Overhead is payroll you only or do you have staff I believe it was this listserv that asked how much the “average” overhead is or patient’s seen to break even. I hadn’t looked at this for a while so decided to look at it. Very rough figuring. But I took total payments for the 1st quarter divided by patients seen; that turned out to be $78.78/patient average payment and I bill mostly 99214’s. Then I just looked at my expenses for the 1st quarter. Keep in mind NJ is high rent, high malpractice state. My total expenses was $28,805 for the quarter. But this doesn’t include malpractice which is paid in July. So if I add 3 months of malpractice, that is an additional $3484 which is $32,289. I see patients in the office 4 days a week. This represents 13 weeks but I took 1 weeks vacation in March so it’s only 12 weeks. That would mean my office costs $2691/week or $672.75 per day to run; or 8.5 patients/day to break even. Rent, payroll, insurance makes up 73% of my costs in that order. Payroll is 22%. And my landlord has nicely frozen my rent for past 3 years instead of the 3% increase/year that was scheduled. Kathy Saradarian, MDNJ