Measuring Staff Costs
We've seen benchmark data that says payroll should consume about 30 percent of a pediatric practice's revenue. When these percentages are tabulated, do they include benefits? Does that include vacation time or just insurance-type benefits?
Question: We've seen benchmark data that says payroll should consume about 30 percent of a pediatric practice's revenue. When these percentages are tabulated, do they include benefits? Does that include vacation time or just insurance-type benefits?
Answer: It depends on which benchmarks you are using - it's important to compare apples to apples.
The MGMA's Cost Survey found that for pediatric practices, median total support staff costs equal 27.08 percent of total medical revenue.
This includes benefits - defined as FICA, payroll taxes, employee health and life insurance, and retirement. It does not include paid vacation.
Don't include in the staff count revenue-producing staff such as nonphysician providers who see patients themselves and bill for it.
Asset Protection and Financial Planning
December 6th 2021Asset protection attorney and regular Physicians Practice contributor Ike Devji and Anthony Williams, an investment advisor representative and the founder and president of Mosaic Financial Associates, discuss the impact of COVID-19 on high-earner assets and financial planning, impending tax changes, common asset protection and wealth preservation mistakes high earners make, and more.
