Monday, March 12, 2007

The Return of OneAdMan....

Basically two ads that show that $1,000,000 in gross revenue does not make you a big business.

"Big Business"

Man Walking around a small machine/job shop.

Man: We make parts for the auto industry, we make a couple of pieces that go into seat belts for a major US Automaker. I have about 12 men and women working for me, from the folks who run the punch presses (points to punch press in the background) to the guy who drives the forklift to help bring the steel in and the put the finished parts on the truck. I pay a fair wage offer some benefits. I do ok, I am not getting rich, but we have built something here, a place for folks to work so they can make a living, have a nice place to live, send their kids to school, the whole American dream.

Video continues of man walking around a small plant.

But since my gross revenue is over $1,000,000 , that's how much money I take in, before I pay a single employee, or play for a single roll of steel, I now need to pay a 1.8% tax on that money, heck I spend 70% of my gross revenues on raw materials and another 20% on salaries and benefits. So that leaves me with 10%, but I haven't paid my electric bill yet or my property taxes on the plant, which trust me are a lot more than $150. When all is said and done that leaves me with about 6%, not the state wants almost a third of that. Hard to expand when almost a 1/3 of your profits go to the state.

Maybe my brother is right, I should hang it up and sell the equipment. It's getting to the point that it isn't worth it.

"Small Town Practice"
There are four doctors in the practice now, we have 7 nurses,
a receptionist and 2 people who do nothing but deal with insurance companies all day. What I get paid to see a patient is set by the insurance companies not by me, now the state wants to charge me a 1.8% tax on my gross revenues. That's the amount of money we take in, that's before I pay a single nurse, buy a single band-aid (video of doctor putting a bandage on a cute child), before we pay the mortgage or property taxes on this place.
However everyone who supplies me, from the company that sells us band-aids and crutches to outfit that washes our scrubs is going to have to pay this tax too, odds are they will pass the costs along to us as well. So it's going to end up costing us more than 'just 1.8%' and we can't pass the costs along. So what can we do, I still have to pay my medical school loans. I guess I can try to see more patients, spending a little less time with each. But that's the reality. I am not Wal-Mart, I am just one doctor in a small practice who is going to have to figure out how to make it work.

More to Come


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