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They may know something that basic. But they often lack some very basic knowledge about other areas of our healthcare system.
I had a group interview at one school where we were asked what CMS was. Everyone else at the table looked dumbfounded. When I answered appropriately, our interviewer noted that I was the only person to have actually answered the question correctly all year. While he certainly doesn't interview all candidates, that so many potential medical students are clueless about the organization that administers health care to more Americans than any other (and the one that will likely affect their own income the most via its policies) seemed ridiculous to me. Payments and legislation are, like it or not, a huge part of medicine. For someone to claim they want to be a doctor while knowing little to nothing about the non-patient care side of things seems almost ridiculous in this day and age.
People's perception of what a doctor does and what they actually do are very different. You come in thinking that you're going to save lives and people are going to thank you from the bottom of their hearts. What actually happens is that another doctor tells you what happened at night. Then you see the patients and spend a bunch of time on the computer doing mindless electronic paperwork. Then you talk about the patients with the other doctors on your team. Then you go around and see patients with the other doctors. Then you go and write more stuff in the computer while you make phone calls to people who don't want to do what you want them to do. Maybe you spend a few minutes for lunch. You do that for a few more hours and then it's time to tell another doctor what you did and what they should do that night while you go home so you can sleep early to get up and do it again tomorrow.