Orthopaedic Surgery: Physician Practice Management Fees
Physician practice management arrangements are used by private equity firms, platform physician practice companies, and publicly-traded practice operators. These arrangements enable for-profit businesses to own and manage facilities, equipment, supplies, business services, and non-medical staff in states that ban the Corporate Practice of Medicine like California, New York, and Texas.
Under comprehensive turnkey management arrangements, for-profit management companies charge independent medical Professional Corporations (PCs) management fees to provide facilities, equipment, supplies, business services, and non-medical staff. According to surveys, physician practice management fees rates are most commonly structured and charged as fixed percentage rates of medical practice revenues.
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Orthopaedic Surgery Physician Practice Management Fees - Doctor Deals podcast #3
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Orthopaedic surgery physician practice management fees fluctuate with:
- Sub-Specialties: All orthopaedic surgeons are not the same. Orthopaedic trauma surgeons and orthopaedic spine surgeons tend to have lower practice expenses compared to other types of orthopaedic surgeons because they provide a larger proportion of their services in inpatient hospital facilities. Orthopaedic sports medicine, hand surgeons, and foot and ankle surgeons tend to have the highest practice expenses among orthopaedic surgeons because they provide a high proportion of their services in outpatient clinic settings. Management fees need to be calibrated to your orthopaedic sub-specialty mix. Additionally, if you have pain management, chiropractors, physician assistants, or physical therapists in the practice as well, the management fees will need to account for the unique practice expenses of those specialties.
- In-Office Ancillary Services: The presence of in-office x-rays, MRIs, minor procedure rooms, DME, physical therapy, and even wholly-owned subsidiary Ambulatory Surgery Centers (ASCs) can dramatically affect non-medical expenses and management fees.
- Regional Geographic Costs: Labor, real estate, supplies, and other expenses vary widely from market to market. Practice expenses and management fees vary from market to market.
Practice Management Fee Ranges for General Orthopaedic Surgeons
The American Medical Association, Medicare, and about 22 of the medical specialty societies spend appreciable time each year administering practice expense surveys and compiling data on the practice expenses for every physician service provided under all physician specialties. This practice expense data can be compiled and aggregated for the services provided by each type of physician specialist and sub-specialist.
Orthopaedic surgery practice management fees can vary substantially from practice to practice for several reasons.
- Some orthopaedic surgery practices have in-office imaging, physical therapy, DME, chiropractors, and pain management.
- Additionally, some orthopaedic surgeons are generalists, while others specialize in adult reconstructive surgery, foot and ankle surgery, hand surgery, spine surgery, trauma surgery, or sports medicine. Practice expenses (and management fees) are not the same for all types of orthopaedic surgeons.
- Orthopaedic surgery groups have different combinations of generalists and sub-specialists.
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