Resist allocating staff costs to individual doctors

Why Allocating Staff Costs to Individual Doctors Can Backfire – And When It Might Work

Allocating staff costs to individual doctors frequently backfires – There are too many situations where doing so not only broke down the cohesiveness of the physicians, it also disrupted staff functioning. Avoid this problem by sharing staff costs collectively.

The exceptions: The physician with his or her own dedicated nurse. Groups with dedicated hospitalists and office-based doctors frequently go to war over how much hospitalists should contribute to the staff overhead cost in an office they rarely use. In that case, directly allocating costs may keep the peace.

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About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read More >

Reed Tinsley, CPA for Physicians