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Pillar · Staffing

Staffing and provider productivity.

Payroll is usually the largest expense in a practice. When payroll grows faster than collections, margin compresses fast. The question isn’t whether to spend on people — it’s whether the spend is producing the work, and whether the work is producing the collections.

Three numbers tell you most of what you need to know: collections per provider, FTEs per provider, and payroll as a percent of collections.

What to track.

When to hire vs. when to restructure.

Hiring solves capacity problems. It does not solve compensation, scheduling, or productivity problems. Before adding an FTE, check whether existing providers and staff are operating at expected productivity. If they’re not, hiring multiplies the problem.

Productivity worth measuring.

Productivity is not how busy the schedule is. It is what the schedule produces. Useful measures:

Staffing ratios that matter.

The right support-staff-to-provider ratio is contested ground and varies by specialty. What matters more than the ratio is whether each support role pays for itself in throughput, patient experience, or revenue cycle performance. A few useful questions:

Compensation models worth understanding.

Most practices use one of three provider compensation models: salary with bonus, productivity-based (wRVU or collections), or some hybrid. None is universally correct. What matters is alignment: the model should reward the behavior the practice wants. If the practice wants growth, comp should reward growth. If the practice wants quality, comp should incorporate quality measures. Comp models that don’t match strategy create friction every year at renewal time.

Questions practice owners ask.

Should new providers be on salary or production? Most groups start new providers on guaranteed salary for 12–24 months, then transition to production. The guarantee is a recruiting tool; the production model is the long-term alignment.

How do we handle a partner who is underproductive? Direct conversation, supported by data. The data usually tells the story before the conversation does. Avoiding the conversation is the costlier choice.

What’s a fair admin time allocation? Specialty- and role-dependent. The principle: protect clinical capacity and pay separately for admin work that builds practice value (leadership, quality, training).

Staffing & Provider Economics Diagnostic.

Find out where labor cost is justified and where it’s outrunning collections.

Request the diagnostic
Heather Engler, Esq.

By Heather Engler, Esq.

Founder & Principal, Capital Advisors

Heather blends legal training with deep expertise in bookkeeping and tax compliance, giving her a unique perspective on financial strategy, risk management, and operations. Under her leadership, Capital Advisors serves hundreds of clients across bookkeeping, tax, payroll, and financial advisory. More about the team →