Deal or no Deal

twozer0, NP · Jan 15, 2016

So basically you're getting 42% of collections. I guess it would depend on what you collection number was. 42% of 100k is 42k so I dont know how long it would take you to get there but your ceiling would depend upon that. Not needing any other benefits is nice for you but because they don't offer them maybe you could negotiate more on the collection %.

Also 1099 is the way to go! Deduct everything you can, even the gas to and from work!

Just some thoughts. It would really depend on how much in collections you plan on bringing in the year. Also you will have to deduct your own taxes. (Just bank a 3rd and dont touch it).

aurora1212 · Jan 15, 2016

0.08%of collections, not 8% to billing...

ladybugmo · Jan 15, 2016

I highly advise against that. That is almost exactly what I have been doing, and unless you have EVERYTHING spelled out in a contract, you may find that what is supposed to be provide is lacking. If you decide to do this, please make sure you consider everything that could happen/go wrong and have an attorney go over the contract before you sign it!

twozer0, NP · Jan 15, 2016

0.08%of collections, not 8% to billing...

right.. you mentioned that you get 50% of collections and then you have to pay 8% of collections to billing. I'm assuming you meant that the 8% comes out of your 50%, either that or what you wanted to say is something totally different.

aurora1212 · Jan 15, 2016

that is the thing though - it is point zero eight % not 8. It is less than 1% or 8 tenths of a percent.

Psychcns · Jan 15, 2016

Are you saying that 50 percent of the money the practice collects goes to you and the other 50 percent goes to overhead. I guess you would have to look at the numbers. What if you have a lot of no shows? It sounds like it would be best to be guaranteed a basic salary and if you collect

Above that then get a percentage.

Also a 1099 isn't necessarily a

Good idea. I understand it ends up being better for the employer.. Do you get sick time vacation time etc.

aurora1212 · Jan 15, 2016

What is it that is "supposed to be provided" has been lacking. What things should I be thinking of?

twozer0, NP · Jan 15, 2016

that is the thing though - it is point zero eight % not 8. It is less than 1% or 8 tenths of a percent.

Thanks for clarifying. When typed that way I wasnt sure if thats what you meant or not. Thats a small amount, insignificant to pay to billing if you ask me. I'm all for 1099, some people arent but if you're organized you can really make it work for you. The facility I work at had all CRNA's at 1099 but then they started cracking down and making them all w-2. We lost at least 5 of them because of that switch because of their write-offs. It's a lot easier to shield your money from uncle sam as a 1099, but again its not for everyone. PsychCNS brings up some good points on no shows and cancellations. This sounds like a total productivity based income which can be good or bad. Maybe you should investigate the practice more and see how many patients they are seeing per day, per provider and get an idea.

aurora1212 · Jan 16, 2016

Thanks for your response and fu - it is mostly medicaid. I am going to ask about no shows. There is apparently a list of about 400 patients waiting for a provider. I would actually be a 1099 - I can totally do my own thing, choose what kinds of patients I do and don't want to see which I like. I also would have totally flexibility about vacation time which is actually more important than paid vacation to me. MH makes a good living so money isn't everything, but I also don't want to be taken advantage of.

What kinds of things can I deduct if the overhead is already being deducted in the 50%? I have a tax person too which of course I will consult.

I haven't even been formally offered the position, but want to be ready...

twozer0, NP · Jan 16, 2016

Thanks for your response and fu - it is mostly medicaid. I am going to ask about no shows. There is apparently a list of about 400 patients waiting for a provider. I would actually be a 1099 - I can totally do my own thing, choose what kinds of patients I do and don't want to see which I like. I also would have totally flexibility about vacation time which is actually more important than paid vacation to me. MH makes a good living so money isn't everything, but I also don't want to be taken advantage of.
What kinds of things can I deduct if the overhead is already being deducted in the 50%? I have a tax person too which of course I will consult.
I haven't even been formally offered the position, but want to be ready...

So a 1099 employee will not have any taxes deducted, thats on your end. So the 50% you collect will be just that, 50% with no deductions. You will have to pay taxes quarterly but in your favor there are a lot of deductions you can use since you are "self employed". I could list some here but you have a tax person that can go over the whole gamut. Also president Obama in his infinite wisdom with healthcare and employment put in a self employment tax. Your tax person can educate you on this too, I think if your over 100kish the tax is low but if you plan on bringing home less than that I think the tax is around 12%. Again with your deductions, there are ways to mitigate this. Talk to your tax person, they can help you out. They can give you the pros and cons of w2 vs 1099.