Delivered-To:
gmoore@idealhealthnetwork.com
From: "John Brady, MD"
<drbrady@thevillagedoctor.hrcoxmail.com>
To: "'L. Gordon Moore'"
<gmoore@idealhealthnetwork.com>
Subject: RE: RE: [Practiceimprovement1] Things quiet,
how about updates financially and emotionally
Date:
X-Mailer: Microsoft Outlook, Build 10.0.2627
J
Brady expense report narrative
Gordon,
Here is the chart of my expenses. Some notes on these:
1) The first 3 months are really an aberration due to buildout and other expenses.
2) Month to month fluctuations are frequently due to things like if I bought immunizations/strep tests, etc.
3) Malpractice premiums were approximately as follows: 4/03-4-04: $7500, 4/04-4/05: $10,000, 4/05-4/06: $12,750. This is paid quarterly and marked as such.
4) Although I did my best to subtract my salary+taxes out, I did not subtract my health insurance out. It would equate to about $500/month for the first year, $600/month for the second year, and $700/month this year.
5) I realize it looks like my expenses have gone through the roof this year, but two things have to be remembered. All corporate taxes and all software and support contracts are due at the beginning of the year, and I have made one time purchases (memory upgrade, work for a new office website) which I could not afford until now. I know I’ve been living “high on the hog,” but expect expenses to drop back to a reasonable level (certainly <$10000) during the second half of the year.
6) I pay my nurse a salary and a quarterly bonus based on the profitability of the office. She also has her entire health insurance premium paid for, a disability policy, and dental insurance. (I felt she deserved all this to put up with me). In any case, other physicians may not decide to pick up these expenses (an additional $300/month).
7) About $1600/month is loan repayment and interest on loans.
I am actually having more anxiety about this chart than the income side of it because I feel I might not be as “low overhead” as I had hoped. I guess if the loans/health insurance/nurse benefits are removed, I still averaged about $5580/month in 2003, $6500/month in 2004, and $8680/month in 2005 (again, should go down). I’m sure others are playing much better financial defense than I am, but I feel I am still coming in much lower than most practices. My hope is to average $20,000 in collections/month (I’m essentially already there) and keep my expenses to $8500/month (after loans are repaid). That should ensure me a salary of $138,000.
John
P.S. I looked at the original post again and although I would still be interested in submitting the information to FPM, I would obviously need to edit it a fair amount. Thanks for the interest and I look forward to further correspondence on this.