Kristenbachus Posted October 9, 2018 Share Posted October 9, 2018 Not sure if I should put this in the PA owned practice forum but this is an unusual situation... I have been offered a job as the sole PA at a privately owned clinic. The doctor that owns this clinic will be my supervising physician but he works for a different group practice. I will not own any part of this clinic at first but I have the option to buy into the practice at some point. He will provide malpractice insurance and has hired a company to do billing and coding but I will be in charge of hiring staff and managing that staff if I decide to take this job. Because I will have somewhat of a management role in addition to patient care we are not sure what is fair for compensation. He had suggested giving all the profits to me and not paying me a base salary. I would feel more comfortable with a base salary and a share of the profits. Has anyone ever done anything like this and what was your compensation? Link to comment Share on other sites More sharing options...
mgriffiths Posted November 1, 2018 Share Posted November 1, 2018 On 10/9/2018 at 5:27 PM, Kristenbachus said: The doctor that owns this clinic will be my supervising physician but he works for a different group practice. So the doc wants you to do the work and you can even buy into the practice to become a part-owner but he is not doing anything to invest in the company himself/herself? Could be an awesome opportunity, but could also be awful. I would be wary of a situation where my co-investor is not doing anything to help build the business. My biggest question: if this is such a great place for you to work, why doesn't the owning physician? Link to comment Share on other sites More sharing options...
AbeTheBabe Posted November 1, 2018 Share Posted November 1, 2018 10 hours ago, mgriffiths said: So the doc wants you to do the work and you can even buy into the practice to become a part-owner but he is not doing anything to invest in the company himself/herself? Could be an awesome opportunity, but could also be awful. I would be wary of a situation where my co-investor is not doing anything to help build the business. My biggest question: if this is such a great place for you to work, why doesn't the owning physician? Isn't he investing in the company though? I mean, he's going to need to lease office space, hire an MA, buy all the equipment, pay PA base salary if he wants one, etc. That's a huge financial investment. Link to comment Share on other sites More sharing options...
Kristenbachus Posted November 2, 2018 Author Share Posted November 2, 2018 Little more background...he joined a concierge group and they were planning to hire me as well for a sort of hybrid practice (he would charge the concierge fee for his patients, I would have my own patient panel and just bill insurance). At the last minute the group got cold feet and decided not to hire me. The physician created an LLC so that I could still work with him, just under a different company. So...he’s invested the money to start the LLC and will pay the start up costs for the clinic as well as marketing, credentialing, malpractice insurance, etc. We ran some numbers and paying me all the profits can potentially be very lucrative for me but of course that depends on me having a full schedule of patients every day and if I take vacation I won’t get paid. Not knowing how much I’ll make each month is a bit nervewracking for me so I’m going to ask him for a base salary plus profit sharing. Link to comment Share on other sites More sharing options...
mgriffiths Posted November 2, 2018 Share Posted November 2, 2018 That makes much more sense and would make me feel more comfortable. I would push to start off with a base salary with bonus/profit sharing with the potential in 1 year, 2 years, whatever makes sense to possibly transition to earning the profits. Yes, being paid from profits does impact your income when you are on vacation, but usually you make significantly more and therefore makes up for the loss during PTO. Link to comment Share on other sites More sharing options...
Moderator ventana Posted November 6, 2018 Moderator Share Posted November 6, 2018 sounds like crappy deal you are going to put blood tears and effort (and LONG hours) into growing this Then after it is grown you can buy into it - the very thing you have grown you now have to buy... On the surface it looks bad..... BUT By really crafting a nice agreement it might be great. You need him to sign papers - ie supervision, VNA, DM shoes and the like He needs to be compensated for this - somewhere in the 3k-10k per year for full time busy practice - much much smaller as it grows Pricing for practice, buy in values, % stock all need to be determined BEFORE anything is done - otherwise the Doc (who has all the power) can just change the purchase price and you are stuck. Be forewarned - Medicate, meaningless use, and insurance companies in general have killed the small practice. you will not make the PQRS and pay for performance thresholds and you will loose 1-4% due to this, then you loose 6-10% oo billing, and you only get 84% of the doc reimbursement, then you pay the doc his supervision and it is quickly down to running a practice off 50-60% of receipts (Which should be going all to you... but your staff needs to be paid) I would say you MUST have a base salary - something in the low 70's Then if certain performance marks are attained, ie receipts or # patients seen, you start getting stock bonus so you start earning ownership/assuming control - through owning up to 99% of the practice..... Link to comment Share on other sites More sharing options...
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