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Dermatology Overhead


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I've heard that derm overhead can be very high, up to 40%, however I'm not sure where that comes from. I've shadowed derm a couple of times and it seems like overhead should be comparable to FM.

 

Where does the 'high' overhead come from?

Same place as overhead for FM docs - office space, equipment, supplies, staff. Derm tends to be solo practice, so it's less efficient in terms of overhead costs, plus I imagine some of their more specialized equipment comes with some extra costs.

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why would they be solo practice? Is it because there aren't as many dermatologists around to do a group practice?

 

In many cases, yes, there simply aren't many dermatologists around so there's not many to form a group practice. I mean, London is a decent-sized city, yet we have a grand total of 8 Dermatologists registered and I don't believe all are overly active. They make enough money to afford the extra overhead and having solo practice means retaining full control of that practice, which can save some headaches.

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If a dermatologist is paying 40% overhead they have poorly negotiated their contract. Solo practice makes sense financially as you are never paying someone a percentage (just fixed rent). It becomes expensive if you want lasers (but then you should have the clientele who want to use them)

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