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Since the management fee we charge is a percentage of the center's income, instead
of a flat fee, we incur a loss during the first year of operations when the
income from billings does not yet cover all costs. This provides our physician
partners with a valuable financial advantage during the center's income "ramp
up" phase. Also, our management fees cover the salaries and benefits of the
center's off-site management staff. We use a centralized staffing model for
the functions of Nurse Manager and Center Administrator who provide assistance
and direction to the center's lead RN. The endoscopy center pays for the salaries
and benefits of the lead RN and all other on-site staff members from the revenues
collected for the services provided by the center.
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