Do you know what you should be paying yourself in your office? Of course you are paying yourself your leftover profits, but how does that stack up to other physicians in your specialty?
Here is some great data that shows what physicians are making. I looked at the Bureau of Labor Statistics compensation reporting for May of 2015 for physicians in an office setting (excludes hospitals, universities, etc) and the Medscape Physician Compensation Report from April of this year. There is a discrepancy between the numbers, but if you look at the growth over last year that is described in the Medscape report, this makes sense.
Bureau of Labor Statistics
Family Practice: $200,100
Internal Medicine: $212,200
Medscape Physician Compensation Report
Family Practice: $207,000
Internal Medicine: $222,000
Here’s something you need to realize about these numbers:
If you aren’t paying yourself at least 40% more than what this shows, you need to take action.
As the owner of an independent practice, you should be making significantly more than the employed doctors because you are a business owner. In fact, we work with doctors who make TWICE these numbers in their small practices working only 4 days a week and taking 6-8 weeks of vacation time each year.
So, if you aren’t making significantly more than the numbers above, it is time to call in someone to take a look at your practice. Even though it means paying a little bit out for this professional advice, a good consultant should be able to identify missed profitability well in excess of what you are paying them and help you become significantly more profitable.