Houston is one of the most important cities for healthcare in our country. Private practice doctors in Houston play a critical role supporting patients with a variety of conditions and needs.
To continue ensuring that you are compensated fairly for your skills and expertise serving patients, it’s important to regularly evaluate the latest pay trends for physicians in Houston.
Another important, often-overlooked factor tied to compensation is the quality of business operations. In other words, how much you make often depends on how well the practice is run.
Typical Factors That Affect Private Practice Pay
According to the latest research, the median salary for a general practice physician or doctor in Houston is $205,090. Broadening out, the typical salary falls between the range of $158,284 to $262,786.
The typical factors that affect compensation for private practice doctors include:
- Location in Houston
- Speciality of the practice
- Continuing education and training
- Number of years as private practice doctor
- How long the practice has been in business
These factors help establish the baseline for expected compensation as a private practice doctor in Houston. What moves the needle is whether the practice is managed well and has insight into financial performance.
Important Factors for Private Practice Growth
Running a medical practice effectively requires business insight, following accounting best practices, and evaluating financial metrics to determine whether the practice is profitable and on the path to growth. Just like running a business.
For many private practice owners, this is a challenging task. And, as a physician, the years of medical training you completed did not come with a business degree to help out the practice.
But, there is an opportunity to help the practice and directly impact your compensation by considering these ways the practice can operate more effectively.
– Revenue Cycle Management: Does the practice have insight into collections? Or, is it handled more reactively? Additionally, is the practice collecting everything that is due?
– Accounting: Is the practice comparing actual results to expected results to identify gaps in revenue collection, expense recording, or cash flow?
– Financial Performance: Is the practice performing period comparisons to evaluate results? Are you using operating statistics (e.g. overhead ratios, collection ratios, and period charges) to convert financial data into meaningful benchmarks?
– Strategy: From a business operations and performance perspective, is the practice using financial data to determine whether there is an opportunity to build out a new room, purchase new equipment, or expand operations to serve more patients, generating new revenue streams?
– Administration: Is the practice providing training to support staff and other employees to increase the efficiency of operations?
This is a sample of business, accounting, and financial questions that need to be addressed by the practice. Taking the temperature of operations health will help the practice identify steps to increase profitability, creating the opportunity for compensation growth for you.
Support for Private Practice Growth in Houston
We recommend that you share this information or have a conversation with the practice owner to gauge current operations.
If the practice needs support with the business, accounting, or financial aspects of running a private practice in Houston, call us. We can help.
Our Houston CPA firm specializes in practice advisory, accounting, and financial services for medical practices. We will first understand the practice’s goals and needs, then craft a plan to provide the right services.
Let’s start a conversation about the practice. We’ll help create a clear path for practice growth, impacting your future compensation delivering quality care to patients.