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Q: Overhead % of Gross in Surgical Practice ( Answered 4 out of 5 stars,   0 Comments )
Subject: Overhead % of Gross in Surgical Practice
Category: Business and Money
Asked by: laurelferris-ga
List Price: $100.00
Posted: 02 Aug 2005 12:00 PDT
Expires: 01 Sep 2005 12:00 PDT
Question ID: 550890
I am looking for published (if possible) data on overhead percentages 
within established (10+ years) elective aesthetic facial plastic
surgery practices (ie, members of the American Academy of Facial
Plastic & Reconstructive Surgery). Specifically, in small practices
with an annual gross >$1 million per physician, what percentage of
gross revenues goes towards covering all overhead practice expenses,
excluding physician compensation and pension contributions? What is
the normal range? Is there data specific to geographical areas? (I am
most interested in Minneapolis/St. Paul.)
Subject: Re: Overhead % of Gross in Surgical Practice
Answered By: belindalevez-ga on 31 Aug 2005 08:05 PDT
Rated:4 out of 5 stars
<According to a survey carried out by the American Academy of Facial
Plastic and Reconstructive Surgery, at 15 years post-residency income
levels were $1.6 million gross, with a net of $779,000. At five to 15
years the gross was about $1 million with a net of approximately
$494,000. The overheads are therefore about 50%
Source: Cosmetic Surgery Times.

This figure is in line with a survey carried out by Medical Economics.
It found that  plastic surgeons spend the most as a percentage of
gross at 48.8%. A breakdown of outlays is given as follows:
Drugs and medical supplies ? 2.8%
Professional car upkeep and depreciation ? 1.2%
Depreciation or rental of medical equipment ? 1.5%
Depreciation of rental or business equipment ? 1%
Continuing education ? 1%
Office payroll ? 15.5%,
Office space 6.9% 
Malpractice premiums 4.9%. 
Business supplies ? 2%
The survey also shows how these figures change depending on how many
doctors are in a practice and regional variations.

The latest survey from Medical Economics does not separate out plastic
surgeons as a group but on average practice expenses are around 50%.
Their survey also shows how spending varies around the country. In the
Great Lakes region,  overheads are 52% of practice revenue. Source:
Medical Economics.

The National Association of Healthcare Consultants publishes an annual
survey on ?Medical and Dental Income and Expense Averages?. It costs
$495 for members and $795 for non-members.

According to Plastic Surgery Interactive plastic surgeons overheads
are 50 to 60% of gross.>

<Additional links:>

<The financial environment of aesthetic surgery: results of a survey
of plastic surgeons.>

<Search strategy:>

<"plastic surgeons" survey "practice costs">

<"plastic surgeons" survey overheads>

<"medical economics" survey plastic>

<Hope this helps.>
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