So you have decided to start a group practice or you have decided to expand to group practice and start hiring clinicians. An important question you need an answer before sharing your job post is how you will pay your clinicians.

There are three ways for business owners of group practices to pay their employees and there are several important considerations before making a decision. 

Flat Fee 

This is the most common compensation model in group practice, especially those that are private pay.

Insurance companies reimburse different amounts depending on the CPT code and the reimbursement rates vary from insurance to insurance so if this model is used in an insurance based practice, it is recommended to take an average of the highest/lowest reimbursement per code.

In this compensation model the practice will typically make more over time but clinicians are typically reimbursed regardless of whether the practice has been paid.

Regarding payroll, this is the easiest model for practice owners and is also beneficial for clinicians to know what they will be paid each paycheck.

The average flat fee range is $30-70 for fully licensed clinicians.

Percentage 

This is the second most common compensation model in group practice and provides the clinician and the practice the opportunity to benefit. It is more common in insurance based practices or those that have contractors as opposed to employees.

In this compensation model the clinician tends to benefit more than the practice but the clinician is typically paid when the practice is paid.

Regarding payroll, this is a more challenging option for the practice owner and typically requires a report generated from the electronic health record which can be time consuming and result in more errors, especially in an insurance-based practice. There is also more variability each payroll for the clinician and more difficult to predict the amount of each paycheck.

The average is 60% for contractors and 50% for employees including any benefits.

Salary

The least common compensation model in group practice is salary and is typically only utilized in larger practices or those that have a leadership team.

In this compensation model, clinicians are paid a set amount regardless of their caseload which can result in more financial risk for practices that do not have consistent revenue.

To determine the salary, the practice owner must calculate what the practice can afford and how many clients a clinician needs to see at a minimum to make that feasible.

It is by far the easiest model for practice owners with regard to payroll because minimal oversight is required especially if payroll software is used.

The average is $50k for 25 billable hours which will vary by state.

Consider Us

The consultants at Compassionate Consulting Company are licensed independent clinical social workers located in Massachusetts who have been running successful counseling practices for years. Here are testimonials from clients that have worked with us. We enjoy working with entrepreneurs that are starting their business, expanding and hiring team members, as well as those who are considering diversifying and adding different income streams. Determining which compensation model is the most appropriate for your group practice and ensuring it is financially sustainable is an area we consult on often. Schedule a free consult so we can learn more about your business goals and share how we can help. Read this post to learn the steps of working with a consultant.