The average dermatology PA salary

There are a number of surveys conducted that give insight into PA average salaries. The Bureau of Labor Statistics found that the median wage for all physician’s assistants in 2020 was $115,390. The lowest-paid 10% earned less than $76,700, while those in the highest pay bracket earned more than $162,000.

Reports from the National Commission on Certification of Physician Assistants (NCCPA) give more detailed information based on specialty. The 2020 Specialty Report found that the average dermatology PA salary was $131,700, and that more than a quarter of all dermatology PAs earned over $160,000.

PAs receive benefits in addition to salaries. These can include various bonuses, health insurance and 401K contributions. Most PAs also receive compensation for professional costs, such as license reimbursement, continuing medical education expenses and liability insurance, which should be considered when calculating a salary.

Three ways to structure PA salaries

There’s no single correct way to structure your PA’s salary; your offer should take into account what’s right for your practice and fair for your PA. However, there are three common structures used to calculate PA salaries that can provide a foundation for your decisions.

Base salary structure

PA who are paid using a base salary structure only receive their base salary and any benefits. This is often used during trial periods for newly graduated PAs. It’s expected that a new PA will spend time shadowing their supervising physician and learning the ropes of both the specialty and the practice.

PAs with minimal experience generally have a 6-12 month trial period, and you’re expected to work closely with them during this time. This allows you to feel confident of their knowledge before you allow them to work with patients by themselves. The straight base salary structure reflects the time you’re spending with the new PA, as well as the fact that they’re not bringing in additional business.

The NCCPA’s most recent report found that in 2019 the median salary for recently certified PAs was $95,000. The benefits offered in addition to base salary frequently include paid days off, health insurance and compensation for continuing education.

Base salary plus percentage structure

The base salary plus percentage structure is most often used for PAs with moderate clinical practice. In this structure, the PA receives a base salary plus a percentage of their collected revenue. This percentage can be of all collected revenue, or may only start when the PA has brought in a certain amount of money. This is attractive for physicians as it allows the PA to reimburse them for the training provided during the initial trial period.

An example of this would be a PA who generated $400,000 in revenue. They have a base salary of $90,000 and receive 25% of any collections over double their base salary, which is $180,000. Deducting $180,000 from $400,000 equals $220,000 and 25% of this is $55,000. This means the PAs salary would be their base salary of $90,000, plus their percentage of $55,000, for a total of $145,000.

There are a number of ways that this structure can be tweaked. If you offer a lot of benefits, you may want to lower the percentage rate. Similarly, if you have fewer benefits, you might offer a higher percentage. You may also wish to start with a lower percentage, say 20%, and increase it each year as the PA gains more experience.

Percentage only structure

Experienced PAs who have a full patient load and don’t require any supervision are often paid a straight percentage of their collected revenues. This reflects the fact that they’re bringing in their own patients and helping grow the practice.

The percentage offered is usually in the 30-45% range. Again, if you offer a lot of benefits, you may offer a lower percentage, while few benefits will generally warrant a higher percentage. You should also consider the intangible things a PA brings to the practice. This can include administration work, staff oversight, marketing and more. Whatever the percentage, it should be a fair recompense for the PA’s work and give them room for growth, so that they’ll remain working at your practice.

PAs working on a percentage-only structure are typically paid monthly or quarterly. If you’re structuring a salary in this way, make sure you have open communication with your PA. Review their monthly billing and collection patterns, so that you can offer insight in how they can bill most effectively. In this situation, PAs want to grow their patient load and bill effectively, so they can generate more revenue, and thus a higher salary.

PA salary best practices

There are a number of factors that can impact a dermatology PA’s salary. Some will lead to a higher salary, while others can lower the amount you offer. Ask yourself:

• Are they receiving benefits, such as health insurance?
• Is there a CME allowance?
• Who pays for liability insurance?
• Are they bringing their own patients to the clinic?
• Do they market the practice?
• Do they contribute to practice management?
• How much supervision do they need?

All the answers should be taken into consideration when you’re assessing what the salary for your physician assistant is and whether it’s fair. Always have frank discussions with your PA to make sure you’ve accounted for all the factors.

Remember that reimbursement levels may change based on their experience and the value they bring to the practice. It may also change based on your business’s growth. It’s worth keeping your PA in the loop as far as the health of your practice is concerned, as they have a vested interest in your business’s continued success.

Make sure you track PA billing separately to ensure their pay is accurate. This can protect both you and your PA, and gives you both concrete knowledge when it’s time for renegotiation.

Overall, your dermatology PA’s salary should mirror the income of the practice. If you do work that’s charged at a higher rate, such as surgery, your PA should earn more. This generally happens automatically when using percentage-based structures, but it should be kept in mind when determining base salaries.

Salary negotiations are an opportunity to build trust and respect between you and your PA. If you’re fair and open in your dealings, you’re likely to be rewarded with a happy PA who can help build financial success for you both.