A recent article published in the Gettry Marcus’ Newsroom section of their website, outlines how medical practices may be able to reduce employee-related expenses as well as “administrative burden” by joining a professional employer organization.
“PEOs partner with businesses, such as medical practices, and serve as the ‘administrative employer,'”according to Lee Ferber, Partner and Co-Chair of theHealthcare Consulting Group at Gettry Marcus. “When a small to mid-size medical practice joins a PEO, they immediately become part of an organization that typically has thousands of employees.” The article explains that as a result, PEOs can typically offer better benefits at a lower cost, whether these be lower health insurance costs–the all-important concern–or improved rates for unemployment and workers compensation benefits.
“Small to mid-size medical practices may not be accepted on certain health insurance plans because of age, gender or the health status of their employees,” according to Ferber. “In a PEO, however, this same group, when pooled with the other employees of the PEO, may ‘fall below the radar’ and be accepted into a plan.”
Once a practice joins a PEO, the “day-to-day management” of personnel is still under the practice’s control, but many administrative and human resources duties are transferred to the PEO. Ferber says that this set-up tends to offer a better balance, especially for smaller practices with limited resources. “The group’s management team can then focus on the important areas that will keep their practice thriving: clinical aspects and non-employee related finances,” he says. “The general picture is one of significant savings in administrative overhead.”
Ferber adds that each practice should carefully consider the cost-vs-benefit of joining a PEO. “We can help a medical practice weigh the direct costs associated with joining against the potential savings, as well as other less tangible factors like the possible reduction in the administrative burden of the practice.”
About Gettry Marcus:
Gettry Marcus CPA, P.C. is a Top 200 firm nationally with offices in Woodbury, Long Island and New York City. We provide accounting, tax, and consulting services to commercial businesses, high net worth individuals and various industries which include Real Estate and Health Care. We have one of the premier and most credentialed Business Valuation and Litigation Groups in the New York Area.