Q&A: Ideal overhead percentage

May 7, 2010

Determine optimum overhead percentage of gross income.

Q: What should an optimal overhead percentage of total gross be in a well-oiled internal medicine practice?

A: Approximately 60 to 65 percent, with variances depending on factors such as location, urban or rural setting, managed care organization participation, use of midlevel providers, ancillary services offered, solo or group setting, age of patients, Medicaid participation, hours worked, and use of hospitalists.