The formula for this calculator was graciously provided by Gale Stoner. Click the link below to visit his website.
How It Works
Incentive plans can work because a well-designed plan will address the basic, human-nature question, What's in it for me? There is no perfect incentive plan and each has its advantages and disadvantages. You have to find a plan that is truly a win-win formula that staff will respond to and the doctor can smile each time a profit sharing check is written and signed.
This tool, based on a formula created by practice management advisor and professional speaker Gale Stoner, provides monthly rewards to staff members for increased production and collections.
Prior to instituting the incentive program, the doctor/owner should make it clear to all staff what the value of each variable will be for the calculation and how they may change from time to time.
Filling out the left hand side of this form will help establish a production goal for a three month period based on the same period the previous year. First, enter the month and year for which you want to calculate a goal. Then, enter the gross collections for the most recent three months the previous year. If necessary, change the inflation factor and enter a reasonable growth rate. After clicking the "Calculate Goal" button, the result will be the target for the three month period's average monthly collections.
At the end of the month the right hand side of the form can be filled out to calculate employee profit sharing. If necessary, adjust the approximate percentage of gross going to staff compensation and then enter the number of full time staff members participating in the program. After entering the gross collections from the most recent three months, click the "Calculate Incentives" button. The resultant answer will describe the total profit sharing and each employee's share.
The formula for this calculator was graciously provided by Gale Stoner. Please contact him with any questions regarding this calculator or for additional information regarding his services and products. Or, visit his website.