May 2002

Fifth Annual
Salary & Expense Survey Results
Are You Getting Your Fair Share?

Additional Resources: View this article in PDF format (216k)

Do you know exactly how much you spend on CA salaries, office space, and leased equipment... and how much you bring in from retailing products and from business generated by your associate doctor? How about your patient visits per week and new patients per week: Are you seeing more or fewer patients than you did a year ago or two years ago?

The doctors who participated in the Chiropractic Economics Fifth Annual Salary & Expense Survey shared that type of information with us, and more. These doctors realize that in order to continue down the road of success, you first must have a handle on your numbers so you know where your starting point is. The survey results are a great way to compare how you’re doing to the doctor across town - or across the country. The data give you a benchmark on how much your colleagues are spending on themselves, their staff and their practices... and how much they’re taking to the bank.

Nearly 400 of you from all 50 states participated in this year’s survey, candidly calculating your costs and compensation. The information that follows makes it easy to determine how your practice stacks up to the average numbers reported by our survey respondents. We’ve included demographic data about the respondents, plus practice stats, income, expenses, and personal data. We’ve graphed the results by region of the country, age, gender, type of practice, managed-care involvement, and more. Where appropriate, we have compared this year’s statistics to those gleaned from our Third and Fourth Annual Salary & Expense Surveys (May 2000 and May 2001 issues of Chiropractic Economics).

For the first time ever - with the help of Chiropractic Economics’ webmaster, Chris Petrello - we gathered 100% of this year’s survey results via a questionnaire posted on our website at www.chiroeco.com. We promoted the online survey in the printed magazine, via e-mail blasts, and on the home page of the website. The results of the survey may also be used in future articles and to help determine editorial topics of interest. We appreciate your willingness to share your financial information by taking the time to answer this industry-exclusive survey.

If you have questions or comments, contact Chiropractic Economics’ Business and Editorial Offices at 904-285-6020. If you have thoughts about salaries and expenses and how the trends are affecting the chiropractic profession, please contact: Tara Stultz, editor-in-chief; fax: 440-234-2192; or send an e-mail to tstultz@chiroeco.com. Thanks to all who participated!

Breakout of Respondents

DC 97.7%
CA/Office Mgr. 1.5%
Student .5%
Retired .3%

About the Survey
• 398 readers responded.
• Figures reflecting an average or mean were calculated by dividing proportionately the total number of respondents per question. Medians were determined by calculating the middle number or range.
• Percentages are also based on the total number of respondents to each question.
• Survey results are for informational purposes
only, based primarily on responses to an e-mailed request to participate in the online survey posted on the Chiropractic Economics website at www.chiroeco.com. Results indicate year-to-year trends and may serve as a benchmark, but the data should not be used in determining salary and expense levels for your practice.

Personal Characteristics
Gender, Age, Number of Years in Practice
Virtually all respondents, 97.7%, are doctors of chiropractic; .3% are retired; .5% percent are students; and 1.5% are office personnel. The breakdown is similar to those found in other chiropractic surveys, including Chiropractic Economics’ 2001 and 2000 reader surveys. 10.5% of the respondents to this year’s survey are female and 89.5% are male. In 2001, 16% of the respondents were women, and in 2000, 17.5% were. The ages of respondents ranged from 24 to 74, with an average age of 41.8.

The average age in 2001 was 40.5, and in 2000 it was 41.7. The breakout by age is 10% under age 30; 30% ages 31-38; 23% 39-45; 29% 46-55 and 8% are 56 and up. The average length of time spent practicing is 12.6, compared to 11.88 in 2001 and 12.07 in 2000. Respondents reported that 79% are married, with 9% married to another DC and 30% have a spouse who is a staff member.

Activity Level
Number of Hours, Additional Activities
Almost all respondents practice at least full time, with 49% working 30-39 hours per week; 14% working 40-49 hours; and 5% putting in more than 50 hours. 27% work 20-29 hours, and 5% put in less than 20 hours. A number of respondents participate in additional revenue-generating activities: 90% retail products to patients; 13% consult with business or industry; 8% lecture or give seminars; and 5% teach. Another 8% are engaged in other revenue-generating activities, such as: expert witness/court testimony, Department of Transportation drug screenings, pre-employment examinations, rental property,

fitness centers, unrelated businesses, coaching, independent medical examinations, peer review, and board positions. Almost all the revenue-generating percentages are up compared to 2001 and 2000.

Principal Form of Employment
Solo, Group, Multi-Discipline
45% consider themselves solo practitioners, compared to 46.5% in 2001 and 44% in 2000. 15.5% are part of a group or have partners, compared to 14% in 2001 and 12% in 2000. 5% reported being employed by a DC, compared to 5.5% in 2001 and 11% in 2000. 34.5% of respondents said they work in a practice with integrated disciplines (some with MDs/DOs, some without), compared to 34% in 2001 and 33% in 2000. Of those multi-disciplinary practices, 12% have an MD/DO on staff, compared to 17% in 2001 and 24% in 2000; 62% offer massage therapy, compared to 67% in 2001 and 76% in 2000; 18% offer rehabilitation, compared to 22% in 2001 and 38% in 2000; and 15% have a nutritionist/ dietitian, compared to 17% in 2001 and 30% in 2000. 38% of respondents offer additional services at their practices, including: acupuncture, yoga, psychology, psychotherapy, reflexology, neurology/ anesthesia, hydrotherapy, colonics, optometry, music therapy, Qi Gong, Reiki, midwifery, and aesthetician services.

Location and Competition
Population Density, Number of Competitors
Respondents estimate an average of 20 clinics within a 5-mile radius of their practices, which is up significantly from 15 in 2001 and 2000. 53% report practices located in suburban areas (49% in 2001 and 50% in 2000); 17% have chosen rural locations (27% in 2001 and 23% in 2000); and 30% are in urban areas (24% in 2001 and 27% in 2000).

Patient Visits
Patient Visits Per Week, New Patients
An average of 135 patient visits per week (PVPW) is the norm for individual respondents; higher than 2001’s average of 117 and 2000’s average of 97. Respondents estimated 149 patient visits per week for the entire clinic, up from 133 last year and 116 in 2000. The average number of new patients per week is 5.7, compared to 5.81 in 2001 and 5.13 in 2000.

Office Staff
Number of Clinics, Staff
Respondents own an average of 1.1 clinics, similar to numbers from previous years. The mean number of full-time employees in each office is 3.5, similar to the 2001 average of 3.72, and exactly the same as 2000.

Fees and Income
Sources of Revenue, Managed-Care Participation
Respondents report the following forms of payment as revenue sources: cash, 97% (87% in 2001 and 92% in 2000); auto insurance, 91% (86% in 2001 and 82% in 2000); private insurance, 90% (81% in 2001 and 84% in 2000); Medicare, 77% (70% in 2001 and 76% in 2000); workers’ compensation, 80% (55% in 2001 and 72% in 2000); managed-care plans, 61% (73% in 2001 and 60% in 2000); Medicaid, 23% (50% in 2001 and 27% in 2000); and 4% accept other forms of payment such as attorneys’ liens and barter arrangements.

Of the 90% of respondents who receive income from retail products, the products offered are: nutritional products, 76% (84% in 2001 and 81% in 2000); pillows, 80% (89% in 2001 and 84% in 2000); orthotic supports, 73% (73% in 2001 and 75% in 2000); topical creams/ointments, 53% (60% in 2001 and 53% in 2000); weight management products, 16% (18% in 2001 and 21% in 2000); and other products, 19% (22% in 2001 and 7% in 2000). Additional products sold by respondents include: exercise equipment, rehab equipment/home rehab equipment, ice packs, books, tapes, massage products, water filters, air filters, knee/wrist supports, back supports, braces, lumbar support belts, herbal heat wraps, cervical collars, orthopedic supplies, magnetic products, and more.

63% of respondents participate in at least one HMO, PPO, or IPA (compared to 69% in 2001 and 62% in 2000).

Practice Expenses Office and Staff Expenses
Respondents reported spending an average of $62,857 per year on office expenses (not including salaries), compared to $81,515 in 2001 and $66,651 in 2000. The totals in each of the office expense categories include: office space, $15,967; miscellaneous expenses such as business loans, dues, and insurance, $7,264; advertising/marketing, $5,767; student loan payments (generally non-deductible), $5,099; business supplies, $5,529; practice management consulting, $5,043; equipment leases, $4,197; utilities, $3,729; computers/software, $2,195; continuing education/professional travel, $2,458; other professionals such as CPAs, attorneys, etc., $2,258; malpractice insurance, $1,596; and medical equipment/repairs, $1,755.

Staff expenses include the following average gross amounts per year for salaries, bonuses, and retirement plans (note that the amount includes the total average per practice in each category, not necessarily per employee): primary doctors of chiropractic, $105,013 ($82,989 in 2001 and $76,108 in 2000); associate doctors, $54,194 ($79,104 in 2001 and $56,069 in 2000); chiropractic assistants and staff, $55,210 ($49,350 in 2001 and $40,478 in 2000); and LMTs, PTs, etc., $51,528 ($32,285 in 2001 and $48,303 in 2000). The MD/DO category’s average was $140,000, but please note that a total of only six respondents answered that question, despite the fact that more respondents than that reported having an MD/DO on staff.

Gross Billings and Net Income
By Region, Age, Gender, Number of Years in Practice, Solo vs. Group, and Managed-Care Participation Income for this portion of the survey was compiled based on specified ranges, rather than individual figures. The overall median gross billings range for this year’s respondents was $250,000 to $349,000, the highest median range reported since Chiropractic Economics established this survey five years ago (the median range for both 2001 and 2000 was $150,000 to $249,000). Likewise, median net income was in the $75,000 to $89,000 range, also an increase from the $60,000 to $74,000 median range reported in 2001 and 2000.

Not surprisingly, 81% of respondents reported that their gross billings are increasing (80% in 2001 and 73% in 2000), while 77% said their gross collections are increasing (compared to 75% in 2001 and 73% in 2000). In addition, 75% said their net income is increasing, up from 73% in 2001.

Gross Billings and Net Income By Region
Respondents in the Southern and Eastern regions of the United States reported the highest net incomes in 2002, with a median range of $90,000 to $104,000. The Western and Midwestern regions reported a median net income range of $75,000 to $89,000. In 2001 and 2000, the South led the pack, at a median range of $75,000 to $89,000; the East, West, and Midwest were all in the $60,000 to $74,000 range in 2001 and 2002.

Median gross billings for the South and East fell into the $250,000 to $349,000 range, and for the West and Midwest, it was in the $150,000 to $249,000 range. In the Midwest especially, responses weighted towards the next median category up - as well as the number of respondents from each region - helped bump the overall median range to $250,000 to $349,000. The vast majority of participants in all regions of the country reported their gross billings and net income are increasing.

Gross Billings and Net Income By Age
Age seems to be a factor when it comes to income. Survey participants under 30 reported a median net income range of $60,000 to $74,000. The 31-38, 46-55, and 56 and up age groups had a net income range of $75,000 to $89,000. The range for the 39-45 age group was the highest, at $90,000 to $104,000.

The median gross billings range for respondents 30 and under and those 56 and up was $150,000 to $249,000. Respondents in the 31-38, 39-45, and 46-55 categories all had a median gross billings range of $250,000 to $349,000.

Gross Billings and Net Income By Gender
The median net income range for women in 2002 stands at $60,000 to $74,000 (up from the $45,000 to $59,000 range in 2001 and 2000). Males were in the median net income range of $75,000 to $89,000 (up from the $60,000 to $74,000 range in 2001 and 2000). The gross billings median range for women stayed the same for 2002 as it was in 2001 and 2000, at $150,000 to $249,000. For men, that number jumped to $250,000 to $349,000 in 2002, up from the $150,000 to $249,000 range in 2001 and 2000.

Gross and Net Revenue By Number of Years in Practice
The median gross billings ranges by number of years in practice are: one year or less, $50,000 to $99,000; years two, three, four, and 31+, $150,000 to $249,000; and years five, 6-8, 9-11, 12-14, 15-17, 18-20, 21-23, and 24-30, $250,000 to $349,000.

The median net income ranges are: one year or less, $30,000 to 44,000; years two and three, $45,000 to $59,000; years four and five, $60,000 to $74,000; years 6-8, 15-17, and 31+, $75,000 to $89,000; years 9-11, 18-20, 21-23, and 24-30, $90,000 to $104,000; and years 12-14, $105,000 to $119,000.

Gross Billings and Net Income By Solo vs. Group
Group/partnership practices remained in the $350,000 to $499,000 median gross billings range (the same as 2001 and 2000). Net income for groups/partnerships was higher than in 2001, with a median range of $105,000 to $119,000 (compared to last year’s $90,000 to $104,000 and 2000’s $75,000 to $89,000 range). Solo practices had a gross billings median range of $250,000 to $349,000 (up from previous years’ ranges of $150,000 to $249,000). The net income median range for solo practices was $75,000 to $89,000, the same as 2001 and 2000.

Respondents reported an average gross revenue of $110,774 generated by associate doctors (compared to $186,409 in 2001 and $162,067 in 2000); $59,363 from MDs/DOs ($64,750 in 2001 and $77,136 in 2000); and $37,332 from LMTs, PTs, and others (up from $32,285 in 2001 and $20,302 in 2000).

Gross Billings and Net Income
By Managed-Care Participation
The respondents who belong to at least one HMO/PPO/IPA (63% of all respondents) had a median gross billings range of $250,000 to $349,000 and a net income range of $75,000 to $89,000. The gross billings range in 2001 was $250,000 to $349,000, and in 2000 it was $150,000 to $249,000. The net income range in 2001 was $75,000 to $89,000, and in 2000 it was $60,000 to $74,000. For those respondents who aren’t part of a managed-care organization, the median gross billings range remained the same as it was in recent years, at $150,000 to $249,000; the net income median range was reported at $60,000 to $74,000 (in 2001, it was also $60,000 to $74,000, and in 2000, it was $45,000 to $59,000).

Thanks to all who participated!