Hiring a Practice Manager: What to Look For and What to Pay

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 management
• Revenue cycle oversight
• Patient experience management
• Vendor relationships
• Compliance coordination
• Physician support and communication

What 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 operations
• Supervisory experience (managing at least 3+ staff)
• Revenue cycle understanding
• EHR proficiency
• Your specialty experience is a plus, not a requirement

Traits That Predict Success

• Problem-solver mindset Every day brings new challenges
• Calm under pressure Medical practices are stressful environments
• Communication skills Bridging physicians, staff, and patients
• Detail orientation Small errors compound in healthcare
• Business acumen Understanding the P&L

Credentials to Consider

• CMPE (Certified Medical Practice Executive) - Gold standard
• MGMA membership/engagement
• Healthcare administration degree helpful but not required
• CPC or billing certification is a bonus

Compensation Benchmarks (2025)

Base Salary Ranges

Varies significantly by market and practice size:

Bonus Structures

Consider tying compensation to outcomes:

• Collection rate improvements
• Patient satisfaction scores
• Staff retention
• Cost control metrics

Benefits Package

Competitive practice managers expect:

• Health insurance
• Retirement plan with match
• PTO (3-4 weeks typical)
• CME/professional development budget
• Potential for profit-sharing in smaller practices

The 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 roles
• Blames previous employers for failures
• No questions about your practice or culture
• Salary-focused before understanding the role
• No interest in professional development

Setting Your New Manager Up for Success

The First 90 Days

• Week 1: Shadow and learn
• Weeks 2-4: Meet all stakeholders, understand workflows
• Months 2-3: Identify quick wins and longer-term opportunities
• End of month 3: Present assessment and recommendations

Ongoing Support

• Weekly check-ins with physician leadership
• Clear decision-making authority
• Budget for professional development
• Regular performance feedback

When to Consider Part-Time or Outsourced Management

Not every practice needs a full-time practice manager:

• Solo practices: Consider a part-time arrangement (10-20 hours/week)
• Practices with strong physician operations leadership: Part-time may suffice
• Turnaround situations: Interim management can help

If you are writing a practice manager job description or scoring candidates, schedule a discovery call to talk through the scope and pay band for your market.