Resist allocating staff costs to individual doctors

Written by Reed Tinsley | May 1, 2006

Why Allocating Staff Costs to Individual Doctors Can Backfire – And When It Might Work

Allocating staff costs to individual doctors frequently backfires – There are too many situations where doing so not only broke down the cohesiveness of the physicians, it also disrupted staff functioning. Avoid this problem by sharing staff costs collectively.

The exceptions: The physician with his or her own dedicated nurse. Groups with dedicated hospitalists and office-based doctors frequently go to war over how much hospitalists should contribute to the staff overhead cost in an office they rarely use. In that case, directly allocating costs may keep the peace.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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