Non-traditional office hours can reap big financial benefits

Non-traditional office hours can reap big financial benefits

(HealthDay)—Physicians can reap significant financial benefits by extending their office hours to include non-traditional hours, according to an article published Jan. 8 in Medical Economics.

Keith Borglum, C.H.B.C., a practice management consultant, appraiser, and broker in Santa Rosa, Calif., notes that additional patients yield higher profitability after fixed overhead costs of the practice have been met. If, for instance, overhead is $20,000 monthly, or $1,000/workday, it takes approximately 12 patients at $90 average reimbursement per patient to pay the office overhead prior to income to the physician. Beyond those first 12 patients, additional patients only incur a variable cost, mostly for medical supplies and billing costs. These variable costs run about 12 to 18 percent of collections.

According to Borglum, even factoring in additional physician labor costs, it is financially worthwhile to extend hours if there is patient demand. Based on the above figures, four additional patients each extended hour nets $320 per hour. Even with four additional hours of physician labor costs at $100/hour, staying open from 5 p.m. to 9 p.m. can yield an additional $880 per day, pre-tax net income.

"If a nurse practitioner or physician assistant is employed, the provider labor costs are halved, and profitability increases even further, even if subject to 'incident-to' non- Medicare billing penalties," Borglum writes.

More information: More Information

add to favorites email to friend print save as pdf

Related Stories

Family doc finds mid-level providers increase revenue

Nov 26, 2013

(HealthDay)—Hiring mid-levels—physicians assistants and nurse practitioners—can improve productivity, resulting in increased physician take-home pay, according to an article published Nov. 10 in Medical Ec ...

Scribes can be beneficial in medical practices

Oct 22, 2013

(HealthDay)—Medical scribes can accurately document physician or independent practitioner dictation and activities, allowing providers to spend more time with patients, according to an article published ...

Recommended for you

Research highlights extent and effects of school violence

10 minutes ago

Six percent of U.S. children and youth missed a day of school over the course of a year because they were the victim of violence or abuse at school. This was a major finding of a study on school safety by University of New ...

Planning for the move from children's to adult palliative care

3 hours ago

The differences between children's and adult palliative care services are too wide for young people with life-limiting conditions to negotiate, according to research by Bangor University. Commenting on the findings, the researchers ...

User comments