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Medical Spa Business Forum > Medical Director Fees

I'm in negotiations to be the medical director for an RN that has owned her spa for 10yrs. She told me the revenue last year was 600, 000.00 $$. What would be an appropriate amount of money for her to pay me to come there 2 half days /week to see new patients and to sign charts. I was thinking 3,000.00 $/month to legitimize her business b/c she needs a doctor and these types of owners are in and out of compliance with the state of IL when they are in between medical directors (physicians). Even though the revenue is high, I'm not sure what they net at this point. It's an S corp. She only pays herself a RN salary.

The way I see it, even though she is profitable and clearly running this business without a doctor- to have a physician come on board that is fully engaged and will make herself accessible for new clients and support as well as participate in all marketing strategies we engage in and be around for at least the next 5-10 years so that we can grow together instead of changing all of the time would be easily worth that. She suggested 1,000.00 $ /month to start and I didn't respond right away so that I could think it through. She is providing the insurance, and will have an office for me to have physician consultations in for nutrition (I'm an OB/Gyn that has stopped doing OB to get into wellness medicine, that also counsels about diet and lifestyle modification).

To me her offer is low given the success of the business. Success of the business means that there are many patients and more charts/liability for me. I want to be fair and I want to work together. We just need to agree on terms. I need an opinion on the value that a board certified, licensed physician brings to a medspa just by being their anchor.

Thank You,

07.1 | Unregistered CommenterS

Interesting post, i'm a medical spa owner but in Canada and here we don't need a physician supervisor for most things. However it's always a bonus to have.
In recent years i've had around 1mil revenue but after all is said and done, profit was 0-100k depending on the year. So even though 600k look high, it doesn't really mean much.
If i were her, i'd be willing to pay about 2k a month for you to come for some hours per week, but the way that you speak about it, meaning that you want to help her grow, sounds like even better value than just a physician that puts his name on the door and leaves so sounds great for her.

07.1 | Registered Commenterflafson

Honestly I agree with the prior response. We've had years where the revenue was over $1 mil but profit was MUCH lower. Our MD gets $500 a month just for having her name on things. If she brings in her own clientele she gets a percentage from the treatments she does.

07.10 | Unregistered CommenterStephanie

It's always the physician's license and reputation that is at risk.

07.11 | Unregistered Commenterlemondo

I am in a similar boat and welcome your feedback.
I have a private spa employing me, myself and I (though none of us are bringing in $600K a year) Ha!. Other than being an Esthetician, I am also a CME (Certified Medical Electrologist) able to perform Laser and Light Based hair removal and electrolysis. I just purchased a Laser and will be using it out of my Medical Directors practice....she is a family physician that is wanting to be more "Med Spa". So, I will only be at her practice a few days per month with MY Laser, and the rest of the time at my own facility, performing treatments that do not require a MD.. She has recently stopped accepting insurance (hence wanting to be more Med Spa) and offers hormone testing, bio-identical hormones and Vitamin IV therapy. These are all areas that I will be able to refer patients to her. I have also offered to advertise her practice on my website and FB Biz page..
* My Laser
* I go to her Office (only a few days per month) She doesn't have to come to me.
* Refer Patients to her
* Advertise her on my Website and FB page
So....what is fair compensation for her?
We are in Florida.

09.29 | Unregistered CommenterChristie

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