For those of you in a group practice, how the net profits are divided among the owners is an important consideration, particularly in today’s reimbursement environment. How are receipts measured and overhead expense allocated?
Have you added a physician assistant or a hygienist, which you didn’t have when you originally spelled out how net profits would be allocated? Are varying productivities among owners making an even allocation unworkable?
Our firm specializes in medical and dental practices, which has allowed us access to a number of income division formulas. What is equitable for your practice? Not only can we advise in this area but we also can prepare the calculations for you and your co-owners periodically throughout the year.