Aspect #2: Human Resources
One of the most costly aspects of a medical practice is the staff. Many physicians have no idea how to determine appropriate salaries, benefit packages, or even staff numbers. Benchmarking can make all of those decisions much simpler.
On average, about one-fourth to one-third of your practice's revenue will be spend on staff. That's based on a national average and is essentially the same for both family and surgical practices. If you have already determined your revenue, then you should be able to easily identify how much you can spend on your staff. Once you know how much you should be spending, you can compare that number to how much you are spending. Some practices end up spending as much as 50% of their revenue on staff and that ends up hurting the practice's profitability.
If you are spending too much, then first compare the salaries and benefit packages of your employees to the local averages. The easiest method is to check your local newspaper's job listings. Look at the salaries being offered and compare them to what you are paying. If you are paying too much either in salary or in benefits, then you might need to make some changes to cut your practice's costs.
If all of your salary numbers stack up well, then the problem may be that you are overstaffed. Cutting your staff by one or two people may help you bring your staffing costs down to where it should be. There are also national averages for the number of support staff per physician which can help you determine if you are overstaffed, but the final decision has to be based on how many staff members you need to efficiently manage your office.