Measuring Staff Costs
We've seen benchmark data that says payroll should consume about 30 percent of a pediatric practice's revenue. When these percentages are tabulated, do they include benefits? Does that include vacation time or just insurance-type benefits?
Question: We've seen benchmark data that says payroll should consume about 30 percent of a pediatric practice's revenue. When these percentages are tabulated, do they include benefits? Does that include vacation time or just insurance-type benefits?
Answer: It depends on which benchmarks you are using - it's important to compare apples to apples.
The MGMA's Cost Survey found that for pediatric practices, median total support staff costs equal 27.08 percent of total medical revenue.
This includes benefits - defined as FICA, payroll taxes, employee health and life insurance, and retirement. It does not include paid vacation.
Don't include in the staff count revenue-producing staff such as nonphysician providers who see patients themselves and bill for it.
Lead through crisis with confidence: A health care leader’s playbook for resilience and reputation
May 6th 2025Proactive crisis readiness equips health care leaders to navigate today’s permacrisis era, protecting brand reputation, sustaining patient‑care continuity, and preserving stakeholder trust when disruptive events strike.
