Making sense of the economics of part-time physician practice
Physicians who would like to work part-time should understand the economic issues involved and learn how to manage staff, patient volume, and costs effectively.
Take-home message: Physicians who would like to work part-time should understand the economic issues involved and learn how to manage staff, patient volume, and costs effectively.
By Nancy Groves; Reviewed by Robert E. Wiggins, MD, MHA
Asheville, NC-Consideration of
“It lets us fill in the gaps in our schedule and cover the overhead better,” said Dr. Wiggins, an Asheville, NC-based
One of the benefits of a part-time arrangement is that it may allow for better utilization of capacity and staffing. However, if these are not managed well, they may be underutilized, he said.
“The key here is managing your staff and facilities with part-time positions,” Dr. Wiggins said.
The second advantage is a greater pool of physicians from which to recruit. The downside of this is that two physicians require more effort to manage than one.
To achieve an economically viable part-time practice, physicians have to understand the economics: patient volume, revenue, fixed and variable costs, the breakeven point, and profit.
Fixed costs include rent and some staff salaries. These will not necessarily be lower for someone working part-time. In a two-physician practice with one physician working full time and another part-time, a receptionist will still be needed in the office every day.
A switch to part-time work may yield some saving in variable costs, though, such as lower use of supplies.
Staffing costs could be reduced if certain employees, such as technicians, only work the same days as the part-time physician.
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