How much does a full-time CFO cost?
A full-time CFO is the senior-most finance executive at a company, responsible for accounting, financial planning, treasury, and strategic finance.
Quick answer
A full-time healthcare CFO costs $250,000 to $450,000 per year in total compensation for mid-market clinics, including base salary, bonus, benefits, and recruiting costs.
The detail
BLS reported a median annual wage of $161,700 for financial managers in May 2024, with the top decile above $239,200. Healthcare CFO compensation runs higher because of revenue cycle, payer contracting, and compliance complexity. Realistic ranges for a healthcare CFO at a $10M to $50M outpatient platform are $200K to $325K base salary, 20 to 40 percent annual bonus target, and $40K to $60K in benefits. Recruiting fees from a healthcare-specialized executive search firm typically run 25 to 33 percent of first-year base, adding $50K to $100K of one-time cost. Total first-year cost commonly lands between $300,000 and $500,000. Most clinics under $20M in revenue do not have enough finance work to justify a full-time CFO, which is why fractional engagements grew so quickly post-2020.
Median financial manager wage was $161,700 in May 2024; 90th percentile exceeded $239,200.
Source: BLS OES May 2024
Recruiting fees from retained executive search firms typically run 25 to 33 percent of first-year base salary.
Source: AESC industry data
Healthcare-sector finance leadership commands a 15 to 25 percent premium over general industry benchmarks.
Benefits typically add 25 to 35 percent on top of base salary.
What this means for clinic owners
From Sorso
Most outpatient clinics under $20M in revenue do not generate enough finance complexity to keep a full-time CFO busy. The math only works when EBITDA is large enough that better forecasting and capital allocation can move it by more than the all-in CFO cost.
Related questions
How much does a fractional CFO cost?
A fractional CFO typically costs $3,000 to $10,000 per month for healthcare clinics, with most outpatient practices in the $4,000 to $7,000 range based on practice size and engagement scope.
When should I hire a fractional CFO?
Most clinics should hire a fractional CFO when they cross $2M in revenue, add a second location, raise debt or equity, or start preparing for a sale, typically 12 to 36 months out.
What is the difference between a CFO and a controller?
A controller manages historical accounting (close, statements, audit, compliance), while a CFO is forward-looking (forecasting, capital allocation, M&A, strategy). Most growing clinics need both, sequenced controller first.
What does a fractional CFO actually do?
A fractional CFO owns financial forecasting, KPI dashboards, cash flow management, capital decisions, and strategic finance work, typically delivering 10 to 25 hours per month on a retainer.
Founder of Sorso. 19 years in corporate finance. Managed a $450M loan portfolio before building a fractional CFO firm exclusively for healthcare clinics.
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