Primary care overhead in low cost of living cities

[string]

It is commonly stated that family physician overhead is around 30%. But im curious how this differs in rural areas and cities with lower costs of living. Specifically Winnipeg. If anyone has any insight, let me know!

[bearded frog]

It's an estimate, so it will vary, and obviously be higher in places with high rent etc. vs rural areas.

[JohnGrisham]

You'd be surprised, overhead in smaller centres can be just as high - but for different reasons (and not always real reasons, but just "well i can charge you because we are your only option" kinda thing) such as staff costs - its harder to get qualified MOAs and nurses etc in smaller centres, so their wages are higher. Same reason why a tim hortons worker in a small rural centre could make 25$/hr etc.    Building costs for newer builds can be alot in some rural areas, but overall real estate costs are alot cheaper...but then you have scarcity of available options in some areas. 

Take 30% as an average, and will widly vary. Be aware of comparables and what you actually get for your 30%. If it gets you a well trained MOA, 2 rooms, well stocked etc etc etc maybe its worth it - if that all allows you to see more patients and bill more. If it just gets you a barebone room and you have to do all your own admin work, then thats a raw deal.

In an urban setting, i can get a range from 15% to 35%, and 35% isnt necessarily better serviced  than 20%.  In rural settings, there is also the variable about fee bonuses, and set rates etc etc, so variable.

[GH0ST]

In my experience I had 25% overhead cost where I worked, but yes in general 30% is the average at least where I was in Northern Ontario. 

- G 

[blueoval177]

On 5/29/2022 at 2:31 PM, string said:

It is commonly stated that family physician overhead is around 30%. But im curious how this differs in rural areas and cities with lower costs of living. Specifically Winnipeg. If anyone has any insight, let me know!

I've seen a range from 15-30% depending on the clinic setup. Rural small town <10-15% is pretty normal, but can be golden handcuffs with way less services. 15-25% for more regional/small city types. Some will be flat rate per month, others % brackets based on income, some will have perks for starting practice or ROS agreements. Sometimes you have to buy in as a partner for lower %. Leased vs owned building, how old the building is - can vary a lot. How well staffed is it, someone looking after billing, etc. In Manitoba is there a "My Health Team" which can have dietician, psych services, pharmacy, etc.

In Winnipeg I've seen 15-30% in advertisements, again have to sort through the model. Something to consider If you are working as as hospitalist or HMO, are you paying overhead while you are not present or a % of your total billings? Sometimes a higher overhead on clinic work only is a better setup if you do more hospital work that is not deducted.