Medical Practice Management
Nov 12

Model potential physician pay formulas before switching

Whether acquiring another partner or your first partner, merging with another practice or responding to a peer’s complaint, building a new compensation plan takes time, patience and modeling. Make sure you or your manager create spreadsheets that accurately illustrate the mechanics of any proposal.

Partners obviously want to see how any proposed compensation change would affect their income. If the doctors leading the formula’s development don’t provide such data, you can be sure each physician will try to figure it out on his or her own.

You’ll develop much better control and accuracy if the leader doctor or administrator develops the spreadsheet data to drive this sensitive discussion.

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →