Specialty: Orthopedic Surgery
State: Michigan City: beautiful
Community Description: one of Michigan's finest cities. It has a wealth of resources including over 280 area businesses and civic-minded organizations that continually invest back into the community to make it one of Michigan's greatest places to live, work, and play. In addition to being a great place to live, the city is a popular vacation destination offering recreational activities year around. This city is a community with a proud heritage and home to the world's largest baby food company. While being located less than an hour from busy metropolitan areas and the beautiful Lake Michigan's shoreline, the city offers the charm of small town living with excellent school systems, many churches, and a business community that provides old-fashioned customer service.
Job Description: Group is an independent private group practice. The Group consists of 22 physicians and 3 mid-level providers, including the specialties Family Practice, OB/GYN, General Surgery, and Orthopedic Surgery. The group is the primary medical group in the area and employs the specialists working at the hospital. The Group currently employs two general orthopedic surgeons and is now looking for an additional surgeon due to a continued robust market growth. Currently the practice is turning away 42% of the orthopedic work. One of the Docs joined the practice 17 years ago and the other joined the practice most recently in July 2006. The current wait time for orthopedic surgery is eight weeks, which is much too long for our patients. A third orthopedic surgeon is required to reduce the surgery wait time and because the County is one of the fastest growing Michigan counties. The only procedures being referred out are spine related. The Docs complete a wide variety of cases including many total joint procedures. The group has realized tremendous growth and is still growing. The Docs, as well as all the physicians in the group, enjoy living in the area because it is a superb place to raise a family. Why join the practice? The practice has an established patient referral base; The new orthopedic surgeon will hit the ground running from day one; There is a compensation formula which recognizes the contributions of each specialty allowing for specialty specific compensation at industry norms. There can be significant variation when it comes to compensation between an orthopedic surgeon and a family practitioner; The practice rewards the high earners by having an income compensation formula that reduces office overhead as income increases, in terms of gross receipts; There is zero competition within the 50K population draw area. The closest competition is in the Muskegon and Grand Rapids, Michigan areas; The practice and community is promoting quality of life; Physicians are offered shareholder status after the second year, with a low buy-in; Overhead and liability insurance are covered by the practice. Office: The office building where the Group resides is owned by the hospital and is located adjacent to the hospital. The Group is leasing a portion of the building from the hospital. The entire office is about 20,000 square feet and the orthopedic section occupies about a fourth of the total space. The orthopedic section is comprised of three private offices for the physicians, x-ray and six exam rooms. The hospital has always been open and receptive to equipment needs. The hospital completed construction a new state-of-the-art OR suite, with three (3) operating rooms in the spring of 2004. OP facilities have also been completed so the ability to establish time in the OR is very accommodating. The hospital is currently in the process of building a 43,000 square foot state-of-the-art Wellness facility in which it will house their Rehab department. This facility will be located one mile form the hospital campus. Compensation during the guarantee period. There is a two-year net income guarantee of $400K per year. If the physicians annual gross receipts exceed $620K, the physician will receive additional compensation equal to 65% of net receipts over $620K. The compensation formula after the guarantee period. The orthopedic surgeon will be an employee of the hospital receiving a base of $100K plus incentives along with becoming a shareholder in the practice. As a shareholder, physicians become vested in their accounts receivables, have voting privileges, and input into future practice direction. Extra money in the corporation at the end of the year is distributed amongst the shareholders as additional bonuses. Benefits: 8 weeks off a year for vacation and CME time along with CME allowance. Health Insurance: Point of service product (POS) 401K and profit sharing. Gross Charges is defined as what services the physician performs and bills. Average reimbursement rate is 50-55% of what is billed. Gross Receipts is defined as the amount of money the practice collects from what the individual physician bills. For Example, if Gross Billings where $300K, the office would bring in approximately $150K in gross receipts. A Multi-tiered compensation formula Tier One Up to the first $270K of gross receipts the physician receives an income of $100K. $170K out of the first $270K goes toward office overhead. Tier Two From $270K to $400K in gross receipts, the physician receives 55% of the gross receipts as additional compensation. An orthopedic surgeon should have no difficulty reaching the second tier. Tier Three If gross receipts exceed $400K, the physician receives 65% of the receipts in excess of $400K as additional compensation. Higher producing physicians realize reducing overhead percentages as their net receipts increase. One of the Docs averaged 520 cases the last few years and his gross receipts have averaged around $750K-$800K. Payer Mix Medicare: 27% Medicaid: 12% HMO/PPO fee for service: 30% Commercial Insurance: 32% Average reimbursements are at 50-55 cents on the dollar. Non-Medicare reimbursements are at least 125% of Medicare rates. Medicare rates in the area compared to the national average are at the 97th percentile. Practice Obligations A 4-day workweek; 2 ½ days in the office; 1 ½ days in surgery; Expect to see approximately 40-45 patients on a full day and 20 patients on a half day; Expect to perform 5-6 cases on a full day in surgery and 2-3 cases on a half day; Yearly volume of procedures: 425-475 cases; An aggressive candidate could approach 550 cases a year; Perform a wide range of cases from total joints to sports medicine, foot, ankle, spine (not totally necessary), adult reconstruction, hand & wrist, hips. Someone that is a sub specialist can expect to do 70% general and 30% sub-specialty; The practice currently has a 2-month waiting list for new consults and a 2-month waiting list for surgery. Patients that need immediate surgery are being referred out.
Contact Person/Title: Fatima Mehak
E-Mail: fatima.mehak@isprosource.com
Fax: 9724582320
Phone: 8664582900
