Payroll is typically your biggest expense in a group practice. Think about your future before making decisions that have a long term impact.
Today's episode focuses on compensation models for group practices. How much is required to hire and retain employees? Every practice should be profitable.
Click here to download our handout for this episode!
Episode Highlights
- Contractors vs. Employees: What is the difference?
- Contractors: Set core hours, not supervised, self-employed, pay for own insurance
- Employees: Employer sets hours, supervised, costs more but more profit
- Compensation Structures:
- Commission: Percentage of fee collected
- Flat Fee Per Session: Specific amount for each session, including note time
- Hourly Rate: Paid at least minimum wage per hour
- Base Plus Commission: Earn regular payment and additional percentage
- Salary: Increased risk for practice owner to guarantee pay
- Reverse Contractor: Collects funds and pays practice owner flat fee/percentage
- Most Popular Benefits:
- Paid time off (PTO)
- Sick leave
- Health insurance
- 401(K)
Links and Resources:
GreenOak Accounting
Therapy For Your Money Podcast