How to divide income from midlevel providers

June 20, 2008

We're planning to hire several midlevel providers for our rapidly growing five-doctor practice, mostly to help with the influx of new patients. How should we divvy up the income from the midlevels, since reimbursements for new-patient visits are usually higher than those for returning patients?

We're planning to hire several midlevel providers for our rapidly growing five-doctor practice, mostly to help with the influx of new patients. How should we divvy up the income from the midlevels, since reimbursements for new-patient visits are usually higher than those for returning patients?

Generally it's fairest to share the wealth to the same degree that you share the costs. In other words, if each physician pays an equal share of the direct costs of employing the midlevels, each should also get an equal share of any resulting profit. Or, if some physicians will use the midlevels' services more than others will, they should also pay a proportionally higher percentage of the employment costs. But figuring out the best solution for the practice gets trickier if, say, one doctor brings in most or all of the new patients. If that's your situation, you'd be wise to get help from an experienced practice management expert.