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productivity percentage

Guest cannongc

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Guest cannongc

What is a typical productivity percentage for bonus pay? I currently get a percentage of the total production I bring in to the office minus my salary. If my percentage is more than my salary I get the difference as a bonus. Right now, I get 18%. Is that high, low, or average?

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  • 2 years later...

Did you ever find an answer? I am ortho in CT, inpatient for 4 yrs now sports office for 2.5 yrs with single doc. Base 115 with seemingly random bonus structure, 10k bonus this year. No holidays, call. 50+ hrs week billing for 350 to 400k. OR 2/5 days week. Single doc. I want to build a production based bonus structure as I am making way more money for the practice than any PA before me and they essentially werent ready for it. I dont have the data on whats actually collected. Can I assume a certain number based on my billing? Any info would be appreciated?

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a few points


billing $$ means nothing

collections means everything (And can be influencd by the practice)

therefore you need to know your billed and collections and then compare to what is the norm for your sector


Very general article I read a few months back


MD/DO's take home about 55% of their collections

PA's are in the 40-45% range



As a rule of thumb most are comfortable with the 50 / 50 rule - you need to generate twice your salary to pay the over head


Ideal for me would be a salary of say 77k (1500/weeek) with me getting 50% of collections over $3000/week


Now the final question is rather the benefits are included or excluded from this number - I saw exclude them as they are part of the overhead for the practice....


So if you bring in $300k to a practice, you should get 150k gross salary -

then you get your medical insurance for a family 15k

retirement kick 5k

FICA/SUTA by employer 10k

Misc Bennies 5k


You brought in 300k

You cost them 150+15+5+10+5 = 185


This leaves $115k for overhead of the MA, billing staff, utilites, rent, and other overhead

MA costs about $45k

Billing costs $15k (5% of collections)

1/2 front office staff $20k (one front office staff can run 2 providers)

Rent and mortage $20k

Mal & other ins $10k


Cost are $110k


leaving 5k for the practice profit



as you see $$ gets very tight and this is the the PA GENERATING 300k (which i bet a lot of PA's think they generate but actually don't come close)



Take off $50k on the salary # - to give you a $100k salary - an there is a little more cushion




no one is going to get rich in the primary care fields when the administation/owners are using PA's as profit centers and wanting/needing to clear 50k profit from the employment of the PA - and this seems to the the general vibe i get locally - the doc's look at me as a profit center, but they look as hiring another doc as growing the practice..... nice double standard that takes money out of my pocket and puts it in the practice

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