How do doctors get paid?

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adcolem44

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Move if i'm in the wrong spot--
But basically I just got into a DO program (yay!) and I'm in my gap year now working as a scribe closely with a physician, and I've had similar clinical experiences working closely with doctors. I'm not related to any doctors and I don't feel comfortable enough to ask this of the doctors I work with, but how do physicians get paid? I figure that it's different depending on the type of practice and maybe the specialty, but what I gather is that the flow of money is something along the lines of:
patient pays insurance---> insurance pays hospital/office---> office pays doctor?
But does it have to do with the number of patients the doctor sees, or the types of procedures that he or she does? Or the medications they prescribe?
Sorry if this is dumb I just feel like I should understand how this works before starting med school.

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Becoming a Student Doctor: There is a section on health systems and we cover the differences in how doctors get paid there, especially if one wants to go to private practice.
 
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Move if i'm in the wrong spot--
But basically I just got into a DO program (yay!) and I'm in my gap year now working as a scribe closely with a physician, and I've had similar clinical experiences working closely with doctors. I'm not related to any doctors and I don't feel comfortable enough to ask this of the doctors I work with, but how do physicians get paid? I figure that it's different depending on the type of practice and maybe the specialty, but what I gather is that the flow of money is something along the lines of:
patient pays insurance---> insurance pays hospital/office---> office pays doctor?
But does it have to do with the number of patients the doctor sees, or the types of procedures that he or she does? Or the medications they prescribe?
Sorry if this is dumb I just feel like I should understand how this works before starting med school.
The basics are:
Private Practice: Claim to insurance--->Insurance pays office--->Expenses are paid--->Physician is paid. If in a group there is usually a set way by which partners share profits.

Employed, Productivity Only: Paid a certain amount based on RVUs or billing codes by practice, either before or after they get reimbursed, depending on your arrangement.

Employed, Base Plus Productivity: Paid a base salary, with what is usually a small amount either per RVU/billing code or for a larger amount per RVU/billing code over a certain threshold. These arrangements usually happen regardless of collections.

Employed, Salary Only: Paid a salary with no incentive pay, regardless of collections, hours worked, or productivity. Call or extra shifts beyond the usual coverage in your contract may add some income.

Employed, Hourly Only: Paid a set amount per hour.

W2 Wages: Employer pays their half of taxes and you are considered an employee. This lowers your tax burden. You are eligible for employee benefits if working enough hours.

1099 Wages: You are an independent contractor and pay both the employer and the employee side of taxes. This makes certain tax breaks available, as well as certain self-funded retirement options. You have to pay for your own benefits.
 
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