Guest guest Posted July 27, 2010 Report Share Posted July 27, 2010 HI All, I wanted to start a question for this group that Dr. Johansen raised when he was writing about saving money on office supplies. One of the hardest things to do is keep expenses low. Dr. Johansen says overhead is typically 75-80% of gross. I'd like to poll this group to see if that is about right for everyone, or if there are different numbers. I know when I started I had negative income for a couple of years, but then took off in the third year. I've been trying to keep the overhead to 60-70%. So I'm wondering what some other docs experience might be. Thanks for the input. Christian Mathisen, DC, CCWFN 3654 S Pacific Hwy Medford, OR 97501 cmathdc@... Quote Link to comment Share on other sites More sharing options...
Guest guest Posted July 29, 2010 Report Share Posted July 29, 2010 My history over last 10 years. (I define overhead as ALL business-related expense, not including doctor salary...in other words, everything that is not profit, is overhead.) Highest %overhead year: 75% of gross receipts (this occurred early in my practice, when I was still paying off a 30k/year practice-purchase loan and was also a member of a practice-mgt. group too) Lowest % overhead year: 50% of gross receipts #1 Expense= (Employees, total work hours approx 1.5 FTE)= 37% of overhead #2 Expense= Rent = 18% of total overhead Sadly, there are not that many good studies regarding this (the various magazine surveys are not scientific) and the recent , large, scientific, NBCE survey did not ask income/expense questions. But, from the 'scientific' (high number of respondents to a large, randomized survey) ACA data that I have seen (although nearly 10 years old) the avg. overhead was about 60% approx. if I recall correctly. It has likely gone up some since then. > > HI All, > I wanted to start a question for this group that Dr. Johansen raised when he was writing about saving money on office supplies. > > One of the hardest things to do is keep expenses low. Dr. Johansen says overhead is typically 75-80% of gross. I'd like to poll this group to see if that is about right for everyone, or if there are different numbers. > > I know when I started I had negative income for a couple of years, but then took off in the third year. I've been trying to keep the overhead to 60-70%. So I'm wondering what some other docs experience might be. > > Thanks for the input. > > Christian Mathisen, DC, CCWFN > 3654 S Pacific Hwy > Medford, OR 97501 > cmathdc@... > Quote Link to comment Share on other sites More sharing options...
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