Hiring a Practice Manager: What to Look For and What to Pay
For practices with 2-5 physicians, the practice manager role is critical. This person sets the operational tone and frees physicians to focus on medicine. Get it right, and your practice transforms. Get it wrong, and you'll feel it daily.
What Great Practice Managers Actually Do
Core Responsibilities
Staff hiring, training, and managementRevenue cycle oversightPatient experience managementVendor relationshipsCompliance coordinationPhysician support and communicationWhat They're NOT
Billing specialists (though they oversee billing)HR experts (though they handle HR)IT professionals (though they manage IT relationships)The Ideal Candidate Profile
Experience That Matters
3-5+ years in medical practice operationsSupervisory experience (managing at least 3+ staff)Revenue cycle understandingEHR proficiencyYour specialty experience is a plus, not a requirementTraits That Predict Success
Problem-solver mindset Every day brings new challengesCalm under pressure Medical practices are stressful environmentsCommunication skills Bridging physicians, staff, and patientsDetail orientation Small errors compound in healthcareBusiness acumen Understanding the P&LCredentials to Consider
CMPE (Certified Medical Practice Executive) - Gold standardMGMA membership/engagementHealthcare administration degree helpful but not requiredCPC or billing certification is a bonusCompensation Benchmarks (2025)
Base Salary Ranges
Varies significantly by market and practice size:
| Practice Size | Low | Median | High |
|---|
| 2-3 providers | $55K | $72K | $90K |
| 4-6 providers | $65K | $85K | $110K |
| 7-10 providers | $80K | $100K | $130K |
Bonus Structures
Consider tying compensation to outcomes:
Collection rate improvementsPatient satisfaction scoresStaff retentionCost control metricsBenefits Package
Competitive practice managers expect:
Health insuranceRetirement plan with matchPTO (3-4 weeks typical)CME/professional development budgetPotential for profit-sharing in smaller practicesThe Interview Process
What to Ask
Scenario questions work best:
"A patient is upset about a bill they received. Walk me through how you'd handle it.""Two staff members are in conflict. What's your approach?""You discover we're collecting only 88% of allowed amounts. What's your first step?""A physician is consistently running 45 minutes behind. How do you address it?"Red Flags to Watch
Can't give specific examples from past rolesBlames previous employers for failuresNo questions about your practice or cultureSalary-focused before understanding the roleNo interest in professional developmentSetting Your New Manager Up for Success
The First 90 Days
Week 1: Shadow and learnWeeks 2-4: Meet all stakeholders, understand workflowsMonths 2-3: Identify quick wins and longer-term opportunitiesEnd of month 3: Present assessment and recommendationsOngoing Support
Weekly check-ins with physician leadershipClear decision-making authorityBudget for professional developmentRegular performance feedbackWhen to Consider Fractional or Outsourced Management
Not every practice needs a full-time practice manager:
Solo practices: Consider fractional (10-20 hours/week)Practices with strong physician operations leadership: Part-time may sufficeTurnaround situations: Interim management can helpLooking for help with practice manager recruitment or interim management? Let's discuss what level of support your practice needs.