How a Medical Group Attracted Top Physicians with a Competitive Compensation and Benefits Strategy
In this case study, we break down how October Three helped a growing medical group maximize physician retirement benefits, reduce staff costs, and solidify a destination for top medical talent.
Situation
A growing medical group consisting of 30 physicians, 10 PAs and nurses, and 50 staff sought to attract and retain top talent through a competitive benefits strategy. While their existing Profit-Sharing Plan was generous—contributing over 9% of compensation plus an additional 5.7% above the Social Security wage base—it left physicians falling short of IRS contribution limits. At the same time, high staff benefit costs limited flexibility for enhancements.
Leadership aimed to modernize their retirement offering without increasing overall staff expenses.
Approach
By enhancing the existing plan with a 401(k) feature and optimizing profit-sharing allocations, the group enabled physicians to maximize contributions up to $70,000 annually. They also introduced a Market Return Cash Balance Plan, allowing older physicians to defer as much as $300,000 annually.
Using safe harbor provisions and targeted plan design, the group maintained compliance while controlling staff benefit costs, reducing them to as low as 7.5% of compensation. And collaboration with existing providers and thorough physician education ensured a smooth and successful rollout.
Results
This strategic benefits overhaul helped the medical group attract top talent while maintaining financial sustainability. Key results included:
Physicians now receive maximum IRS-allowed retirement contributions, significantly boosting recruitment competitiveness
Staff benefit costs held steady or decreased, supporting the group’s financial goals
Strong physician engagement and full regulatory compliance throughout implementation
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