Dear Dr. Noah Lot – How much should our practice be spending for a manager?

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Dear Dr. Noah Lot:
How much should our practice be spending for a manager?
Suzanne D, DVM – Overnight/weekend ER


I’m glad you asked. And the answer is, it depends on the skills required to manage your practice today, as well as what skills are necessary to lead it into the future to realize your vision. Of course geography makes for varied salaries as well but we can look at percentages of revenue as a place to start.

General practices typically try to stay around 3% of revenue for management. For emergency and specialty practices, we see a range of 5-7% of revenue, with the understanding that this includes an experienced and talented hospital administrator, possibly an assistant administrator or human resources manager, sometimes a bookkeeper, and any money the owner(s) may take for management responsibilities outside of their clinical work. That means a practice grossing $5,000,000 a year in revenue would allocate $250,000 – $350,000 a year for management salaries. Ideally, it should be closer to 5%, but sometimes you have to invest in the right talent (pay more) that will help you grow into your potential, and then salaries will even out to the desired percent of revenue.

Ask yourself:

  • Are you questioning whether you have the right individual managing the practice?
  • Are you wondering whether you need another manager to support the current individual because the job has gotten too big?
  • Are you unsure of exactly what an administrator should do and how they should spend their time?
  • Do you feel like a portion of the management responsibilities are not being adequately addressed?
  • Are you tasked with doing more administrative work than you should or want to?

If you answered yes to any of these, my friends at BluePrints can help.

As practices grow, many find themselves in a leadership hole with lots of frustration and uncertainty. That’s where BluePrints comes in. They can assess the needs of the practice from a leadership perspective and once they know your goals, they’ll provide you with feedback and recommendations on the best way to achieve your vision – and help get the right people in place to get you there.

Save yourself the burnout and gain clarity regarding the leadership needs of your practice. Reach out today to discuss how they can create a blueprint just for you.

Dr. Noah Lot

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Categories: Dr. Noah Lot Posted: Tuesday, April 4, 2021 Tags: , ,