Cost of Education and Maintaining Licenses :

Doctors make lots of money?  Yes, true (top 4%), but the expenses are also quite high as well.  That's why there's always a distinction between the GROSS and NET Income.

Reality: The price to pay for any Doctor to practice medicine in California is not cheap!

Dr. Yenn's Overhead Bills, related to the practice of medicine/podiatry:                                                                                    

1)  Medical License to Practice in California                      $900.00   every 2 years

2)  Malpractice Insurance, 5^th year                                 $9,377.00   annually, with tail coverage

3)      X-Ray Operator & Supervisor License                           $500.00   bi-annually, $45.78                                                                                                          there after.

4)  Medical Board Qualification / Certification                  $250.00   annually

5)  Surgical Board Qual. / Certification                             $350.00   annually

6)  DEA (drug enforcement prescription license)                $551.00   every 3 years

7)  Unsub Stafford Student Loan #1 AFSA                           $412.14   monthly

8)  Stafford #2 Student Loan USA Group                             $112.37   monthly

9)  Perkins #1 Student Loan AFSA                                        $40.00   monthly

10) Perkins #2 Student UCSD                                              $90.00   quarterly

11)  HPSL Student Loan AFSA                                               $82.00   monthly

12)  Medical Society AMA/APMA                                       $2,000.00   annually

13)  Medical Society CMA/CPMA                                      $1,000.00   annually

14)  Association fee for ACPMSA Surgery                             $900.00   annually

15)  CME (requirement of every doctor, 50 units/2yrs)      $1,200.00   every 2 yrs, specialty seminars

16)  LACPMS annual fees                                                    $500.00   annually

17)  OCPMS annual fees                                                     $500.00   annually

18)  Business license city #1                                               $255.27   annually

19)  Business license city #2                                               $154.43   annually

20)  Surgical Hospital Staff Privileging Renewals      $200.00-$700.00   each X 4 locations annually

21)  Parental Loan / Gifts / Family Holidays                     $12,500.00  (minimal) annually

22)  Medical Instruments & Office Supplies                        $1,100.00  annually

23)  Condo Mortgage + HOA ($300/mo)                             $2,100.00   monthly (doesn't include prop. tax)

24) Property Tax (since 02/01/03)                                   $4,629.97  annually (2 installments)

25)  Gas Bill                                                                         $7.50   monthly

26)  Electric Bill / Heat                                                        $36.00   ev. 2 month

27)  Car payment                                                               $450.00   monthly

28)  Car Insurance (2 cars)                                                 $1250.00   annually

29)  Car Registration, DMV                                                  $200.00   annually

30)  Car License, DMV                                                          $35.00   annually

31)  Transportation MetroSubway; Car Gas ; parking tix's         $94.00   monthly

32)  2 credit cards                                                           $1,500.00   monthly

33)  phone bill (with DSL service)                                         $85.00   monthly

34)  cellular/pager                                                               $75.00   monthly

35)  yearly tax bracket for independent contractor Dr.          37-40%  of annual earnings to government

36)  Accountant                                                                  $720.00  yearly tax only

37)  Personal lawyer or pre-paid legal service                       $700.00  yearly

38)  Examination & Licensing Fee’s, ev. 1-2 years               $1,800.00 for 2 exams ($900 each)

39)  Business Airfare, Hotel, and Transportation                  $1,960.00 for 2 major trips/year

40)  Office Space Rent, fair market value, L.A. County               50% of insurance reimbursement

41)  Internet/domain reg/web hosting/misc utilities               $125.95   annually

42)  Medical / Dental / Vision Health Insurance                       $160.00   monthly

43)  Biller for Medical claims                                                     6-7%  of accounts receivable

44)  Collection Agency Fee's                                                   15-30%  of collected

45) Loss revenue                                                                      18% of gross income

Future:

46)  Front office staff employee                                         $30,000.00   annually + benefits

47)  Back office assistant aide employee                             $40,000.00   annually + benefits

48) Property liability insur., DME (durable medical equipt)    $2,500.00  annually

49) Home Owner's Property Insurance                                      $20.00  monthly

Dr. Yenn's Expenses    Last update: 04/09/09,   First update: 07/18/00    www.dyenn.com