While I realize there are many variables in this question such as sq ft of office, location, lease term, etc.
For those currently in private practice, do you have an idea of what % of your overhead goes to rent?
As you mentioned, too many variables to draw any sort of conclusion from the answers you'll receive.
My estimated % of overhead that goes to rent is ~40%.
Variables to consider:
- What does the % mean? The % for an established dermatologist might not be equivalent to the % for one trying to get established
- I'm in a group with multiple offices. How is the overhead split between these places?
- large sq ft offices vs smaller offices
- overhead is split amongst multiple providers/physicians
- some are in desirable locations, some not so much
- office furnishings are average to below average in some offices, above average in others
- are you including a split to the office for cosmetic patients? In-house pathology? Mohs lab? Mohs waiting room?
In the end, I think this is a number that you should have access to. I would ask for a breakdown of the actual numbers themselves. I noticed that as my collections increased, so did my allocation for overhead. The actual numbers are more helpful than a % IMO. It's also one of the reasons I wouldn't feel comfortable with a pure % of collections contract when immediately starting with a group.