Can I earn $420K on 60% of billings?

billings

We often hear from GPs who are looking for jobs and won’t consider positions that offer 60% of billings. However, if a GP is smart with their billings and working at a busy site with an experienced owner and practice manager – a lower percentage is not always indicative of lower earnings.

GPs sometimes turn down positions with our clients because they have received an offer of 70-75% of billings from a small, new privately-owned practice.  A few months later they contact us again because things haven’t worked out. There is a range of factors but they are often around a few key areas – not getting a fair share of new patients, no or little nursing support, issues with receiving their pay and not enough patients coming into the practice.

 

Questions to ask when a practice is offering a high percentage of billings:

  • Are they a well-established practice?
  • Are there a lot of GPs at the site?
  • Does the practice have a reputation for a high turnover rate of doctors?
  • Why does the position for a new GP exist?
  • What does the service fee cover?

 

Some of the larger practices that offer a lower percentage of billings to the GP are also covering things such as admin assistance, extra marketing for the practice and new GPs, medical supplies and full-time nursing support, including chronic disease nurses.  With these employers, you are likely to receive more support which should free up your time to allow you to see more patients.

Looking at some statistics from one of our clients that pays 60% for daytime work (and an increase for after-hours), many of their GPs are taking home an average of over $230 an hour (approx £135), and their highest biller takes home more than $260 per hour, on average. Interestingly, they achieved this without the aid of any procedural work. On these numbers, a GP earning $230 an hour, working 40 hours a week for 46 weeks a year – can take home (before tax) $420K a year (or £250K)

If you are uncertain whether an offer you have been presented with is too good to be true, we can help look at the background of the practice, and may have insights from our own dealings with them. If it turns out the offer isn’t what it seemed, let us help you find a better option. We work closely with our clients to get a good understanding of their business model, and the systems they have put in place to set their GPs up for success.

When choosing a position, the percentage of billings is not always an indication of financial success. As a GP said to me recently, 60% of billings at a well-run practice is still better than 75% of nothing!