Third Annual Salary & Expense Survey

Breakout of Respondents

About the Survey
· 502 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 on the answers of the readers who responded to a questionnaire that appeared in the March 2000 issue of Chiropractic Economics. Results indicate year-to-year trends among Chiropractic Economics readers and serve as a benchmark, but the data should not be used in determining salary and expense levels for your practice.

GENERAL SURVEY FINDINGS

If you’re like most chiropractors, you probably sit down at least every week or two to go over your practice’s financial stats. When you’re reviewing your expenses and profitability, do you ever find yourself wondering how the chiropractor down the street ­ or across the country ­ is doing? Chances are, you wouldn’t mind knowing what your colleagues spend on themselves, their staff and their practices… and how much they’re taking to the bank.

In an effort to answer those types of questions, we recently asked Chiropractic Economics’ readers to respond to our Third Annual Salary & Expense Survey. More than 500 of you from all 50 states candidly calculated your costs and compensation. The information that follows makes it easy to determine how your practice stacks up to the 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 First and Second Annual Salary & Expense Surveys (May 1998 and May 1999 issues of Chiropractic Economics).

We sent this year’s survey to recipients of the March 2000 edition of Chiropractic Economics magazine. Surveys received within the designated time period have been tabulated here. The results of the survey will be used in future articles and to help determine editorial topics of interest. We appreciate your willingness to share your private 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, send your letter to the editor to Tara Stultz, editor; fax: 440-234-2192; or send an e-mail to tarastultz@aol.com. Thanks to all who participated!

Personal Characteristics

Gender, Age, Number of Years in Practice
Virtually all respondents, 97%, are doctors of chiropractic; 1.5% are retired; 1% percent are students; and .5% are office personnel. The percentages are similar to those found in other chiropractic surveys, including Chiropractic Economics’ 1999 and 1998 reader surveys. 17.5% of the respondents are female and 82.5% are male. This year’s survey included responses from more women; in 1999 and 1998, 12% of the respondents were women. The ages of respondents ranged from 24 to 84, with an average age of 41.7. The average age in 1999 was 41.5, and in 1998 it was 41. The breakout by age is 18% under age 30; 26% ages 31-38; 22% 39-45; 23% 46-55 and 11% are ages 56 and up. The average number of years in practice is 12.07, down slightly from 12.63 in 1999 and 12.6 in 1998. Respondents reported that 75% are married, with 5% married to a DC and 22% married to a staff member.

Activity Level

Number of Hours, Additional Activities
Almost all respondents practice full time, with 42% practicing 30-39 hours per week; 26% work 40-49 hours; and 6% put in more than 50 hours. 22% work 20-29 hours, and only 4% put in less than 20 hours. These averages are similar to 1999 and 1998 figures. A number of respondents participate in additional revenue-generating activities: 88% retail products to patients; 6% consult with business or industry; 4% lecture or give seminars; and 5% teach at a college or school. Another 5% engage in other revenue-generating activities, such as: renting out office space, drug testing, mobile diagnostic services, Department of Transportation physicals, and more. Almost all the percentages are up slightly from 1999 and 1998.

Principle Form of Employment

Solo, Group, Multi-Discipline

44% consider themselves solo practitioners, compared to 51% in 1999 and 54% in 1998. 12% are part of a group or have partners, compared to 15% in 1999 and 12% in 1998. 11% reported being employed by a DC, compared to only 3% in 1999 and 2% in 1998. 33% of respondents said they work in a practice with integrated disciplines (some with MDs/DOs, some without). Of those multi-disciplinary practices, 24% have an MD/DO on staff, compared to only 6% in 1999 and 3% in 1998; 76% offer massage therapy, compared to 24% in 1999 and 18% in 1998; 38% offer rehabilitation, compared to 13% in 1999 and 5% in 1998; and 30% have a nutritionist/dietitian, compared to 11% in 1999 and 5% in 1998. 24% of respondents offer additional services, including: acupuncture, aromatherapy, dental services, homeopathy, naturopathy, physical therapy, lactation counseling, podiatry, and more.

Location and Competition

Population Density, Number of Competitors

Respondents estimate an average of 15 clinics within a 5-mile radius of their clinic, an increase from estimates of 13 in 1999 and eight in 1998. 50% report practices located in suburban areas (55% in 1999); 23% have chosen rural locations (23% in 1999); and and 27% are in urban areas (22% in 1999).

Patient Visits

Patient Visit Average, Number of New Patients

An average of 97 patient visits (PVA) per week are the norm for individual respondents, lower than 1999’s average of 106 and 1998’s average of 114. Respondents estimated 116 patient visits per week for the entire clinic, down from 135 patient visits in 1999 and 120 in 1998. The average number of new patients per week is 5.13, similar to the average of 5.44 in 1999 and 5.36 in 1998.

Office Staff Number of Clinics, Staff

Respondents own an average of 1.04 clinics, similar to numbers from previous years. The mean number of full-time employees in each office is 3.5, up slightly from 3.15 in 1999 and 2.83 in 1998.

Fees and Income

Sources of Revenue, Managed-Care Participation

Respondents report the following forms of payment as revenue sources: cash, 92% (99% in 1999 and 97% in 1998); auto insurance, 82% (92% in 1999 and 1998); private insurance, 84% (92% in 1999 and 91% in 1998); Medicare, 76% (81% in 1999 and 86% in 1998); workers’ compensation, 72% (78% in 1999 and 83% in 1998); managed-care plans, 60% (60% in 1999 and 65% in 1998); Medicaid, 27% (34% in 1999 and 36% in 1998); and 5% accept other forms of payment such as attorneys’ liens and barter arrangements.

Of the 88% of respondents who receive income from retail products, the products offered are: nutritional products, 81% (77% in 1999 and 75% in 1998); pillows, 84% (77% in 1999 and 82% in 1998); orthotic supports, 75% (71% in 1999 and 77% in 1998); topical creams/ointments, 53% (47% in 1999 and 49% in 1998); weight management products, 21% (20% in 1999 and 17% in 1998); and other products, 7% (also 7% in 1999). Additional products sold by respondents include: books, water filtration products, exercise products, exercise equipment, hot packs, magnets/magnetic products, aesthetic skin-care products, and more.

62% of respondents participate in at least one HMO, PPO or IPA (down slightly from 64% and 65% in 1999 and 1998). While 62% of respondents say they belong to at least one managed-care plan, it is worth noting that only 60% reported managed care as a “source of revenue.”

Practice Expenses Office and Staff Expenses

Respondents reported spending an average of $66,651 per year on office expenses, down considerably from $92,548 in 1999 and $82,385 in 1998. The totals in each of the office expense categories include: office space, $12,367; miscellaneous expenses such as business loans, dues and insurance, $16,753; advertising/marketing, $5,473; student loan payments, $5,239; business supplies, $5,181; practice management consultants, $4,073; equipment leases, $4,069; utilities, $3,404; computers/software, $1,850; continuing education/professional travel, $2,583; other professionals such as CPAs, attorneys, etc., $2,289; malpractice insurance, $1,750; and medical equipment/repairs, $1,620.

Staff expenses include the following average amounts per year for salaries, bonuses and retirement plans: primary doctors of chiropractic, $76,108 (down from $81,824 in 1999); associates, $56,069 (down from $61,604 in 1999); chiropractic assistants and staff (total), $40,478 ($40,179 in 1999); and MDs, LMTs and PTs (total), $48,303 ($41,507 in 1999).

Gross and Net Income

By Region, Age, Gender, Number of Years in Practice, Multi-Group Specialty, and Managed-Care Participation

Income for this portion of the survey was compiled based on specified ranges, rather than individual figures. The median gross income range reported by this year’s respondents was again in the range of $150,000 to $249,000; individual median net income was again reported to be in the $60,000 to $74,000 range (these ranges are the same as the ones reported in 1999 and 1998). In addition, 73% of respondents reported that their gross revenue is increasing (74% in 1999), while 73% said their net revenue is increasing (72% in 1999). Even though the median ranges have remained stable over the three survey years, gross and net revenues are apparently increasing within the specified ranges.

Gross and Net Income By Region
Respondents in the Southern region of the United States reported the highest net income in 2000, with a median range of $75,000 to $89,000. In 1999, the Midwest laid claim to the highest average net income range; and in 1998, it was the Eastern region. The 1999 median net income range for the East, West and South is $60,000 to $74,000.

Median gross income for all regions fell into the $150,000 to $249,000 range, the same as 1999 and 1998 figures. The majority of participants in all regions of the country reported their gross revenue is increasing, including 76% in the West (83% in 1999); 78% in the Midwest (75% in 1999); 71% in the South (67% in 1999); and 64% in the East (66% in 1999). The net revenue in all areas is increasing as well, with 80% in the West (82% in 1999); 79% in the Midwest (72% in 1999); 69% in the South (70% in 1999); and 59% in the East (64% in 1999).

Gross and Net Income By Age

Age is a factor when it comes to income. Survey participants 30 and under reported a median net income range of $45,000 to $59,000 (the same as 1999, and higher than 1998’s median range of $30,000 to $44,000). The highest net income range remains at $75,000 to $89,000, for respondents aged 39-45 ($90,000 to $104,000 in 1999, and $75,000 to $89,000 in 1998). Groups netting a median of $60,000 to $74,000 include age ranges 31-38, 46-55 and 56 and up, the same as 1999 and 1998 respondents. The median gross income was $150,000 to $249,000 for all age groups (in 1999, the median gross income range was similar, with the exception of those 30 and under and those 56 and up, whose median gross was $100,000 to $149,000; in 1998, the median gross income range for the 56 and up category was $100,000 to $149,000, and all other categories were $150,000 to $249,000).

Gross and Net Income By Gender

Females still fall behind in 2000 when it comes to the median net income range, with $45,000 to $59,000 (the same as 1999, but a jump from 1998’s net income of $30,000 to $44,000). Males still earn a median of $60,000 to $74,000 (the same as 1999 and 1998). Gross median income remained the same this year for both groups at $150,000 to $249,000 (consistent with the figures from 1999 and 1998).

Gross and Net Income By Number of Years in Practice

The median gross revenue ranges by number of years in practice are: one year or less, $50,000 to $99,000; year two, $100,000 to $149,000; years three, four, five, 6-8, 9-11, 12-14, 21-23, 24-30 and 31+, $150,000 to $249,000; and years 15-17 and 18-20 grossed $250,000 to $349,000. Comparing those figures to 1999, the first year the breakout was done, changes were seen in the following categories: 12-14 years in practice, down from $250,000 to 349,000 range; 18-20 years, up from the $150,000 to $249,000 range; and 24-30 years, up from the $100,000 to $149,000 range.

The median net income ranges are: one year or less, $30,000 to $44,000; year two, $45,000 to $59,000; years three, four, five, 6-8, 21-23 and 24-30, $60,000 to $74,000; years 9-11, 12-14, 18-20 and 31+, $75,000 to $89,000; and years 15-17, $90,000 to $104,000. Comparing those figures to 1999, changes were seen in the following categories: three years in practice, up from the $45,000 to $59,000 range; 12-14 years, down from $105,000 to $119,000; 18-20 years, up from $60,000 to $74,000; 21-23 years, up from $45,000 to $59,000; and 31+ years, down from $90,000 to $104,000.

Gross and Net Income By Specialty

Group/partnership practices remained in the $350,00 to $499,000 median gross income range (the same as 1999, and up from 1998’s $250,000 to $349,000 range). Net income for groups/partnerships was lower than 1999, with a median of $75,000 to $89,000 (compared to last year’s $90,000 to $104,900 median range and 1998’s $75,000 to $89,000 range). Solo practices had a gross median of $150,000 to $249,000 (consistent over the last three years), and a net median of $75,000 to 89,000 (up from $60,000 to $74,900 for 1999 and 1998).

Respondents reported an average gross income of $162,067 from associates (up from $157,883 in 1999 and $131,226 in 1998); $77,136 from MDs (up from $53,100 in 1999); and $20,302 from LMTs, PTs and others.

Gross and Net Income By Managed-Care Participation

The respondents who belong to at least one HMO/PPO/IPA (62% of all respondents) did not see a change in their median gross and net revenue ranges. For the third year straight, those numbers were $150,000 to $249,000 for gross and $60,000 to $74,000 for net. For those respondents who aren’t part of a managed-care organization, the median gross revenue range remained the same, at $150,000 to $249,000; however, the net income median range dropped from $60,000 to $74,000 (in 1999 and 1998) to $45,000 to $59,000 in 2000.

Thanks to all who participated!