Employer contracts can fill a schedule fast. When they do, the next contract may need a new hire, and that hire has to be paid for before the members arrive. Look at your capacity, price the hire into the contracts that need it, and avoid tying a long-term hire to one short contract.
Know when you're close
Watch two numbers each month: your panel size against the panel you can serve well, and how far out your next open appointment is. When either one is close to your limit, a new group will push out existing members unless you add capacity. This post covers panel size.
Which hire
A medical assistant can free your time for visits. A second provider adds a whole panel. The right one depends on where your time goes now. Here's how to test an MA hire and here's the math for a second provider.
Price the hire into the contracts
In a made-up example, a fully loaded medical assistant costs $4,200 a month. That hire lets you take about 150 more members. If those members come from employer contracts paying $65, with $20 in direct costs, each leaves $45. You need about 94 members to cover the hire, before the hire adds anything to profit.
That's your planning number. If the next contract brings 60 members, the hire isn't covered yet. Either sign more, phase in, or wait.
Don't hire for one employer
If one contract would be the only reason for a hire, check its term. A one-year contract and a permanent hire don't match well. Options:
- A longer contract term, or a minimum enrollment, to cover the hire.
- Part-time or contract help until the group is proven.
- A cash reserve sized to cover the hire for several months if the contract ends. More on concentration risk.
Hire ahead or behind?
Hiring ahead means paying for capacity before revenue. Hiring behind means a few crowded months. Your cash decides which you can afford. A 13-week forecast shows how long you can carry a hire before the members arrive.
What I'd do this week
- Write down the panel size you can serve well today.
- Estimate how many more members a medical assistant would let you take.
- Work out how many employer members it takes to cover that hire.
Common questions
Should an employer pay for my hire?
Not directly, but the price and term should cover it if the group is the reason you're hiring.
What if I hire and the contract doesn't renew?
That's the risk to plan for. Keep a reserve, sign other groups, and avoid long commitments you can't carry.
Can I share a hire between employer and individual members?
Yes. A hire can serve everyone. Count the employer groups' share of visits when you decide who pays for it.
Want to see whether a hire pays for itself?
We reconcile every account every month and send your P&L and Balance Sheet by the 15th, so decisions like this start from real numbers. If that's what you need, apply to work with us.