DOES MY PRACTICE NEED A PRACTICE ADMINISTRATOR AND WHAT WILL IT COST TO ADD THE ROLE?

In my last blog, I discussed several reasons many dental practices are adding the staff position of Practice Administrator.  The next questions as you weigh that option may be, “Will the practice benefit from employing an Administrator?” and “What is a fair compensation for this role?”

Benefits for the practice?  Will the position pay for itself by allowing the dentist to see additional patients in what was previously administrative time?  Will it lessen the dentist’s stress level as he/she becomes comfortable with delegating management responsibilities?  Will collections improve as an Administrator focuses on outstanding claims and overdue accounts?   Is this the person who can help me write an annual budget and stick to it in order to assure savings and increased profits?   Will the wheels of teamwork among staff improve when someone is in this role?  Can this person help me better manage my time and outside commitments?  Will the demands of ever-increasing intrusive regulations be met in a more timely and orderly way?  If “Yes” is the answer to most or all such questions, consider adding a Practice Administrator.

To decide a level of compensation for such a role, talk with your practice accountant or management consultant about the range of wages paid to similar jobs in your area.  Additionally, survey your region to determine wages paid to experienced office administrators, administrative assistants, or human resource managers---your Practice Administrator’s responsibilities will be commensurate with these jobs.  Another source of information about wages may be your state labor department.  Many state labor departments conduct wage surveys that name types of jobs with the median wage for each, and make the information available to the public.  Accessing such surveys is an excellent source of accurate information as the dentist is considering wages for a Practice Administrator as well as for a variety of other positions in his/her office.

Obviously, wage rates vary widely depending on metropolitan or rural area, regional cost of living, education and experience of the candidate, and so on.  In the Southeast I have seen Practice Administrators paid $25 to $35 or more per hour, depending on experience and the scope of responsibilities the dentist is will to delegate.  If the Administrator is to be the equivalent of a COO (Chief Operating Officer) in business and industry so that the dentist is free to concentrate on patient care, the addition of the role may prove an invaluable asset.  After deep consideration to determine if you, the dentist, are willing to delegate significant responsibilities without micro-managing, you may decide the position is just what your practice needs to continue to grow and thrive.