Running a medical or dental practice means wearing a lot of hats.
Payroll. Compliance. Benefits. Hiring. Terminations. And everything in between.
It’s a lot—and it’s not what you went into healthcare for.
That’s why more growing practices are turning to Professional Employer Organizations (PEOs) to handle HR in a smarter, faster, and more cost-effective way.
In this guide, we’ll break down what PEOs actually do, what’s changed in 2025, and how to find the right fit for your team—so you can spend less time managing paperwork, and more time running your practice.
What is a PEO?
A PEO acts as a co-employer, handling HR services on your behalf.
You still manage your team day-to-day, but the PEO takes care of:
- Payroll processing
- Employee benefits administration
- Regulatory compliance
- Workers’ comp and risk management
- Hiring, onboarding, and performance systems
It’s like having a full HR department—without the in-house cost or overhead.
Why more practices are using PEOs in 2025
PEOs aren’t new. But they’ve evolved.
Here’s what’s different this year:
- AI + analytics help practices optimize hiring and retention
- Custom benefit packages make it easier to attract top talent
- Cloud-based dashboards simplify remote workforce management
- Regulatory tracking tools reduce legal risk
- Patient-centered practices use PEOs to spend less time on admin—and more on care
Key benefits of partnering with a PEO
1. Save time on admin
No more juggling spreadsheets or chasing compliance updates.
Your PEO keeps everything in one system—and up to date.
2. Access better benefits
You can offer corporate-level plans (health, dental, wellness, and more) without paying corporate-level rates.
3. Stay compliant across the board
Your PEO monitors changing employment laws and ensures your practice is protected—especially across multiple states or locations.
4. Improve employee retention
Stronger onboarding, better benefits, and real-time HR support help your team stay longer and perform better.
5. Scale without hiring a full HR team
Add locations, grow your team, or go remote—your PEO grows with you.
What to look for in a PEO partner
Not all PEOs are built for medical and dental practices. Look for one that offers:
✅ Healthcare-specific experience
✅ EHR and payroll system integration
✅ Customizable benefits packages
✅ Built-in compliance support
✅ Support for remote or hybrid teams
✅ Data privacy and HIPAA-aligned practices
Questions to ask before you choose
- Does this PEO understand the compliance needs of healthcare practices?
- How do they handle multi-location or remote teams?
- Can they support both W-2 and 1099 workers?
- What benefits can I offer my staff through them?
- How quickly can they onboard new hires?
- Is their platform cloud-based and easy to use?
Common mistakes to avoid
❌ Choosing a generalist PEO with no healthcare experience
❌ Not verifying integration with your current systems
❌ Focusing only on cost, instead of ROI
❌ Ignoring the employee experience (benefits, access, onboarding)
❌ Overcommitting to long-term contracts without flexibility
Who should consider a PEO?
A PEO is especially helpful if your practice:
- Is growing quickly and needs more HR support
- Struggles with turnover, benefits, or payroll delays
- Has remote, part-time, or multi-state staff
- Wants to offer better benefits but can’t do it alone
- Is spending too much time staying compliant
Whether you’re a solo clinic or managing a multi-provider operation, the right PEO helps you scale with less friction.
How to find the right PEO service for your practice
There’s no one-size-fits-all solution—but we’ve made it easy to find the right match.
👉 Click here to get matched with a PEO that fits your practice
Takes 2 minutes. No pressure. Just clear, personalized recommendations.
If your practice is growing, your HR systems should grow with you.
PEO services are built to help medical and dental teams stay compliant, competitive, and focused—without getting buried in admin.