6 signs it’s time to reduce staff at your practice

Payroll is routinely the largest expense in a physician practice; often rivaling rent, supplies and malpractice insurance combined. As reimbursement rates flatten, inflation drives up supply costs and patients migrate to telehealth or retail clinics, even well‑run groups can find themselves supporting more employees than current demand justifies. The pandemic’s payroll‑protection lifeline has ended, and many administrators now face the harder math of matching head count to leaner margins. Downsizing, however, is delicate work: trim too aggressively and service, quality and morale suffer; wait too long and a slow drip of red ink can threaten solvency. Consistent audits of workflow, productivity and costs are your best hedge against surprise layoffs. Use the following six indicators as an early‑warning dashboard—if several are blinking at once, it may be time to right‑size your roster before the numbers make the decision for you.