The Negative Profitability of a Small Practice

This doctor was three months away from bankruptcy. He just wasn't paying himself for over three years. All the production that he was producing, he wasn't getting a paycheck for it. It was going back to try to plug the holes in the business. Debt service for this particular practice, $18,730 per month. Available funds is net profit plus debt service. This is how much he actually has to take home. Negative $34,564, real practice. Then negative 18.9 percent profitability. That's two much smaller practice, $1.3 million and $1.4 million.