Start Receiving Our Blog In Your In-Box Regularly

Providing content that inspires and informs doctors on how to thrive as micro-corporations!

Earning 1099 Side Income as a Doctor by Collaborating with Nurse Practitioners

Jan 31, 2025

As physicians, we are continuously navigating changes in healthcare, and one of the growing opportunities today lies in collaborative work with Nurse Practitioners (NPs). In states where NPs require physician collaborators, or within companies where doctors oversee multiple clinical settings. This growing role not only enhances patient care but also provides an excellent source of 1099 side income. If you’re a physician curious about how this opportunity could expand your professional scope and income, this post will break down everything you need to know—from legal requirements to typical compensation—and help you understand if collaborating with NPs is right for you.

I have been serving as a nurse practitioner collaborator for over 20 years and I have found it to fulfilling professionally and financially.

Let’s dive into what collaborating as a physician with NPs entails and explore how you can set yourself up for success in this increasingly popular role.

The Collaborative Physician Role: What It Entails

The role of a collaborating physician varies by state and employer, but there are some common expectations and responsibilities. Generally, the physician provides oversight to ensure quality patient care and acts as a resource for clinical support. Here’s a closer look at some of the typical responsibilities:

  1. Chart Review: In most collaborative agreements, physicians review a portion of the NP's charts, often 5-10%. This ensures that patients receive the highest standard of care and helps maintain compliance with regulations.

  2. Bilateral Communication: Regular communication is essential. Collaborating physicians need to be available to discuss complex cases, provide guidance on best practices, and offer backup support when needed. Most collaborations include structured communication channels, such as weekly or monthly check-ins and email or phone consultations as necessary.

  3. Available Backup Support: NPs may need backup for certain clinical scenarios or complex cases. As the collaborating physician, you serve as the expert support system, providing peace of mind for the NP and contributing to better patient outcomes.

By committing to these responsibilities, you’re able to leverage your expertise and make a meaningful impact on patient care, while also earning an additional stream of income.

How Much Can You Earn? Typical Compensation for Collaborative Agreements

Compensation for collaborating physicians varies significantly based on the region, number of NPs you oversee, and the nature of the practice. Below is a table outlining the typical market rate for collaborating with NPs, depending on the extent of involvement and oversight requirements.

 In some cases, healthcare companies may compensate at higher rates, especially in underserved or rural areas where there is a shortage of collaborative physicians. Alternatively, for physicians managing multiple NPs or providing oversight for high-risk patient populations, compensation can exceed these estimates.

Key Benefits of Serving as a Collaborating Physician

Becoming a collaborating physician offers several benefits beyond the additional income stream. Here’s what you stand to gain:

  1. Increased Professional Influence: By collaborating with NPs, you shape practice standards and influence patient outcomes across diverse clinical settings.

  2. Enhanced Skill Development: As a mentor and guide for NPs, you reinforce your clinical knowledge and gain insights from a team-based care model, enhancing your own skills.

  3. Flexible, Location-Independent Income: Most collaborative work can be done remotely, allowing you to support NPs without being tied to a specific location. This flexibility is ideal for physicians who value work-life balance. This is how I currently handle my collaborative contract.

  4. Pathway to Entrepreneurship: Serving as a collaborating physician can be a step toward growing your own micro-corporation, enabling you to explore new roles and revenue streams without leaving clinical practice altogether.

Steps to Get Started: Becoming a Collaborating Physician

  1. Understand Your State’s Requirements: Each state has unique regulations regarding NP collaboration. It’s essential to familiarize yourself with your state’s guidelines, as these will influence your scope of responsibility and how many NPs you can oversee.

  2. Network with NPs and Employers: Many NPs look for collaborating physicians independently, while others rely on healthcare companies to arrange oversight. Networking within NP organizations and professional communities can help you find opportunities. I can also point you in the direction of a nationwide organization that matches collaborating doctors and NP’s called Collaborating Docs.

  3. Negotiate Your Rate: It’s essential to understand the going market rate and to be prepared to negotiate based on the level of oversight required. Use the table above as a benchmark.

  4. Document Your Agreement: A well-drafted collaboration agreement outlines each party’s responsibilities and establishes clear terms for communication, chart review, and compensation. Nurse practitioners often have these legal agreements readily available due to their frequent need for them, and their professional associations provide collaborative templates.

  5. Set Up Your Micro-Corporation: Diverse 1099 income streams like this are common place, consider forming a micro-corporation to manage your collaborations, and other job stacked 1099 income. By doing so, you can position yourself for further growth and greater income potential.

Maximizing Your Collaborative Income: Structuring a Micro-Corporation

As a collaborating physician, creating a micro-corporation allows you to operate your collaborations as a standalone business. By establishing your own company, you can work with multiple NPs, negotiate contracts more effectively, add additional side hustles, and enjoy tax advantages as a business owner.

If you’re interested in setting up a micro-corporation to streamline and scale your collaboration income, let’s do a SimpliMD micro-business consultation for $99 and we can discuss your particular situation. For only $99, you’ll receive one year of SimpliMD membership (a $2,500 value), including access to invaluable business products and resources tailored to physician entrepreneurs

If you want to just jump in and get started, I offer a Business Plan Bundle for $99 specifically designed for self-employed physicians and their micro-business. Here’s what you’ll find in the Suite:

  • SimpliMD Business Plan Template: Crafted for self-employed doctors, this template provides a roadmap to structure and grow your business.

  • Micro-Corporation Budget Template: Save hours of time with a pre-built budget tailored to your micro-corporation.

  • SWOT Analysis Template: Analyze your strengths, weaknesses, opportunities, and threats to optimize your business planning.

If you’re looking to create a virtual practice with true independence and autonomy that will allow you to job stack both 1099 and W-2 income, sign up for our course, Creating a Practice Without Walls. In this course, you’ll learn how to establish a micro-corporation that provides you with agency and tax efficiency in the healthcare marketplace. And if you follow this link, you can grab it for half off (saving $100) today only. Don’t miss out!

By leveraging these resources, you’ll gain the tools, guidance, and support to take full control of your professional life and income.

Conclusion

The opportunity to collaborate with NPs provides an exciting and viable way to expand your income as a physician. Whether you choose to work with a single NP or expand your role to oversee several clinical settings, this is a path with meaningful rewards, including flexibility, professional influence, and income growth. And with SimpliMD’s Business Plan Bundle, you can streamline and scale your collaborative practice into a full-fledged micro-corporation, setting yourself up for long-term success.