Associate Compensation Structure
Recently I interviewed a few owners about their compensation structure. I learned a lot from them and some other owners I talked with about this topic. I then sat down and worked out what I think is a good structure for a clinic like mine, and perhaps yours. Here it is below.
Associate Compensation Structure
Goal: Bonus based on the growth of the Clinic as a team, not each doctor. This will also compensate the Chiropractor for the patient care in the office and give them an ownership mentality with the clinic growth bonus structure.
• Variables may change based on your practice overhead, in vs. out of network insurance, insurance reimbursement, the affluence of your area, etc. I chose the below numbers for easy round numbers of collection amounts and then did the math from there to get the office visit numbers. The monthly office number was divided by 4.3 to get the weekly office visit numbers.
• This is just a structure, and the variables need to be adjusted based on your practice analytics and experience of the associate chiropractor.
• This is for scenarios where the owner is still looking to grow and grow together. This isn’t necessarily for owners who are looking to slow down.
• This is for clinics with predictable revenue and expenses prior to bringing on the associate.
• I used 30k as the baseline in this example because, in most scenarios, you need to have that amount coming in each month to afford an associate with this model.
• I recommend the bonus kicking in after one year.
Salary: There is quite a variation of cost of living that you need to consider that. I didn’t want to put a too high of a number that would make sense in San Francisco but would be unrealistic for a small town. With that in mind, pick a good healthy amount.
o Healthy Salary
Benefits
o Malpractice Insurance Paid
o 1,000 per year for CEUs
o 1-week paid vacation
o 3 Personal Days
CEU days don't count against vacation or personal days
The 2018 Statistics and Goals are just examples of numbers and you can plug in your clinic’s statistics here.
2018 Statistics
• 30,000/Month Total
• 112 Patient Visits Per Week
• 483 Patient Visits Per Month
• 28 New Patients Per Month
• $62 Per Patient Visit
Baseline Goals for 2019
• $35,000 Total Collections/Month Avg
• 35 New Patients Per Month Avg
• 125 Patient Visits Per Week Avg
• 538 Patient Visits Per Month Avg
• $65 Per Office Visit Avg
Bonus Structure: Based on Office Monthly Collections as a Team
4 Tiers
• 35k Total Collections
o 125 Patient Visits per week
o 538 Patient Visits Per Month
o $500 Bonus
• 40k Total Collections
o 143 Patient Visits Per Week
o 615 Office Visits Per Month
o 2K Bonus
o As the business owner, you will need to monitor any increase in overhead due to the increase in office visits and collections.
• 45k Total Collections
o 161 Patient Visits Per Week
o 692 Patient Visits Per Month
o 3K Bonus
o As the business owner, you will need to monitor any increase in overhead due to the increase in office visits and collections.
• 50k Total Collections
o 178 Patient Visits Per Week
o 769 Patient Visits Per Month
o 4K Bonus
o As the business owner, you will need to monitor any increase in overhead due to the increase in office visits and collections.
1K Bonus added for every 5,000 added to the clinic