How much should I pay my practice manager?
Practice manager salaries typically range from $65,000 to $130,000 annually, with the median around $85,000 for single-location outpatient practices and $115,000+ for multi-location administrators.
Definition
A practice manager is the operational lead responsible for staffing, scheduling, billing oversight, vendor management, and day-to-day administration of a medical or dental practice.
The detail
BLS reported a median annual wage of $117,960 for medical and health services managers in May 2024, with the bottom 10 percent under $67,900 and the top 10 percent above $219,080. MGMA Management Compensation Survey data shows practice administrators at single-specialty groups earn a median of $90,000 to $120,000, with multi-location administrators commanding 25 to 40 percent more. Bonus structures typically add 5 to 15 percent of base, often tied to revenue growth, AR days, or staff retention. Benefits add another 25 to 30 percent. Geographic variation is significant: California and the Northeast pay 15 to 25 percent above national medians; rural practices pay 10 to 20 percent below. The right salary is whatever produces a manager who reduces your involvement in operations by at least 10 hours per week.
Median wage for medical and health services managers was $117,960 in May 2024.
Top 10 percent earned more than $219,080 annually, mostly at multi-location and hospital-affiliated groups.
Source: BLS OES May 2024
MGMA Management Compensation Survey is the standard source for benchmarking practice administrator pay by specialty and region.
What this means for clinic owners
From Sorso
Underpaying your practice manager is one of the most expensive mistakes a clinic owner makes. Turnover in this seat costs 6 to 12 months of revenue disruption. Pay at or above the 50th percentile and tie a meaningful bonus to two or three KPIs you actually want to move.
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What is a good overhead ratio for medical practices?
A good overhead ratio is 55 to 65 percent of collections for primary care, 50 to 60 percent for most specialties, and 60 to 72 percent for general dentistry, per MGMA Cost Survey data.
What is the average revenue per provider?
Average revenue per provider ranges from $400,000 to $1.2M annually depending on specialty, with primary care typically $500K to $750K, specialty care $700K to $1.5M, and procedural specialties exceeding $2M.
What is a good staff-to-provider ratio?
A good staff-to-provider ratio is 3.5 to 5.5 FTE staff per FTE provider for most outpatient specialties, with primary care typically 4 to 5, specialty care 3.5 to 4.5, and procedural specialties 5 to 7.
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.
How do you structure compensation for an associate physician in a private practice?
Most associate physician compensation packages in private practice combine a guaranteed base salary for the first 12 to 24 months with a productivity-based incentive (typically a percentage of personal collections or wRVUs above a threshold), plus benefits and a defined partnership track. The right structure depends on specialty norms, payer mix, and whether the role is partner-track or career associate.
How much should outpatient clinics spend on staff training and continuing education per year?
Most outpatient clinics budget roughly 1 to 3 percent of total payroll for staff training, continuing education, and required certifications, with clinically licensed roles (providers, RNs, therapists) running higher than administrative staff. The right number depends on specialty CE requirements, billing-staff certification needs, and how aggressively the practice is upskilling for new services or systems.
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