Keep a Healthy Pulse on Your Business: How a Professional Employer Organization Can Help

By Norman Paul Jr., JD, Chief Executive Officer of SWBC Professional Employer Services
Tuesday, September 4, 2018

Medical practice costs across the nation continue to rise — from increased wages for your staff in an ever-tightening job market, to rising employee benefit costs and increased overhead costs. At the same time, due to lower carrier reimbursement rates, you often must absorb these rising costs.

Understanding what a professional employer organization (PEO) is and how partnering with one can save you thousands of dollars in administration costs is key to leaving more money for you and your practice.

PEOs operate on a “co-employment” relationship established and regulated by the Texas PEO Licensing Act. According to the National Association of Professional Employer Organization (NAPEO), PEOs provide services for nearly 180,000 small and mid-sized businesses, employing as many as 3.4 million people.

When you retain a PEO, you often gain access to a staff of payroll and HR experts ready to help you manage your back-office functions for a fraction of the cost of a full-time employee, while still allowing you to remain in total control of the day-to-day operations of your practice. Plus, with many PEOs, you gain access to state-of-the-art technology platforms so your payroll, employee onboarding and other day-to-day HR functions are streamlined and operate more efficiently — saving you from unnecessary software investments.

Norman Paul Jr., JD, Chief Executive Officer of SWBC Professional Employer Services

Now that you understand the PEO service offering, how can partnering with a PEO help a medical practice save money? For starters, you may have multiple employees on your payroll managing administrative processes like payroll, HR, benefits management, your 401(k) and/or workers’ compensation. Whether you have five or 500 employees, it can be a logistical nightmare to deal with these back-office administrative burdens while tending to what’s most important within your practice — your patients. Partnering with a full-service, credentialed PEO often allows you to obtain insurance coverages — both health-related and for workers’ compensation — on a pooled basis under the PEO’s master policy, thereby giving you access to competitive insurance rates that you may not be able to obtain on your own.

Like any important financial decision, it’s prudent to conduct a thorough cost/benefit analysis before you partner with a PEO. Often, for the average cost of one full-time employee, a PEO can provide your practice access to a team of subject matter HR experts.


Learn more on how SWBC Professional Employer Services PEO (SWBC PEO) helped one Texas medical practice reduce their administrative burden, while at the same time enabling them to offer their internal staff high-caliber benefits. Visit swb.us/save to read their full story.

Norman Paul oversees SWBC PEO’s services in Texas and 26 states. Paul also serves as Corporate Counsel and provides guidance on compliance issues, conducts client training and currently serves as the Chair of the NAPEO Board of Directors.