Income & Cost of Operating a Primary Medical Care Practice in Houston, Texas

PCM Practice Economics Chart

Physician's Salary 156,000 38.61%
Staff Salaries* 83,200 20.59%
Employment Taxes 21,528 5.33%
Health Benefits 16,260 4.02%
Liability Insurance 5,850 1.45%
Property Insurance 2,730 .68%
Rent 21,450 5.31%
Utilities 9,750 2.41%
Phone and Internet 7,800 1.93%
Medical Supplies 17,550 4.34%
Office Supplies 3,900 .97%
Billing, Claims & IT 12,000 2.97%
Equipment Leases 1,170 .29%
Licenses & Fees 6,240 1.54%
Auto 15,600 3.86%
Lab 7,800 1.93%
Depreciation 2,730 .68%
Other Taxes 1,560 .39%
Other Expenses 10,920 2.70%
Total Annually 404,038 100%

Usual Income from a Fee-for-Service Practice

  Patients  
Adults 1300  
Children 200  
Seniors 300  
  Visits Revenue
Level 1 3000 61,740
Level 3 1200 90,000
Level 2 1800 81,000
Procedures 1400 202,260
Total   435,000
Margin over expenses   30,962

Patient Monhtly Payment Plan

  Patients  
Adults 1300  
Children 200  
Seniors 300  
  Monthly Fees Annual Income
Adults 27 421,200
Children 27 64,800
Seniors 40.5 145,800
Total   631,800
Margin over expenses   227,762

Example of average monthly income per patient

  Example 1 Example 2 Example 3
Collected Annual Income 435,000 465,000 500,000
Number of Patients Seen 1800 1900 2000
Average Annual Income Per Patient 241.67 244.74 250.00
Average Monthly Income Per Patient 20.14 20.39 20.83