Clinician compensation
Can your group therapy practice afford a higher clinician pay split?
Test the proposed split against what you actually collect per visit. After clinician pay and direct costs, what remains needs to cover admin, rent, software and a cushion for slower months.
Independent Practice Advisors · 4 min read
Start with collections by service and payer
Use completed visits from a period that has had time to be paid. Divide what you collected, including the client’s share, by the number of visits. Separate payers and services so a practice-wide average doesn’t hide the visits where a change would be hardest to sustain.
Compare the current and proposed split
On a $120 collection, a 60% split pays the clinician $72 and leaves the practice $48 before other costs. A 65% split pays $78 and leaves $42. If other direct costs average $8 per visit under both scenarios, that leaves $40 today and $34 under the proposal. These numbers illustrate the calculation. If employer costs rise with pay, include that difference too.
Test the whole month
Multiply the difference by the number of visits affected. At 300 visits, $6 less per visit leaves $1,800 less toward overhead and profit before other changes. Check what happens in a slow month or if more visits shift to lower-paying plans. If you’re considering guaranteed pay, model the cost during cancellations and caseload ramp-up too.
Agree on what would make the change work
Write down how much the practice needs to retain to cover shared costs and build cash. If the proposal falls short, test a different structure or identify the collections and volume that would make it work. Review employment and tax questions with the appropriate advisors.
Nothing here is legal, tax, accounting or compliance advice. Keep your accountant and your attorney. We don’t provide HR advice.