Cyndee said:
OH, I see. So you are saying that if all anesthesiologists were 1) employed by hospitals (most of them aren't) and 2) were replaced by independently practicing CRNA's who were also employed by hospitals (even a smaller percentage of CRNA's who practice independently are hospital employees) then that entity which is THE HOSPITAL would make more money. Great, the hospital makes more money. But who really cares if the hospital makes more money? Do you as an NP care? Certainly, patients don't care? The hospital CEO, CFO and COO care because they are now getting bigger bonuses. But where is the value creation? I mean, there is no savings in your example, money has simply been moved around. There is no savings to patients, there is no savings to the health care system. Hmm, that explanation doesn't provide any real economic driving force for the gas docs to be replaced by CRNA's. So Cyndee, I guess I would like you to give me a more detailed and perhaps clearer example because this one doesn't even work for econ 101. Please try again.
Cyndee, I am serious here. Please show me some savings, some value creation, some economic benefit. I am really hoping you can shed some light on this issue. Thanks again in advance.
Let's talk about NP's (since that's what I am) and the economic advantage of hiring one.
NP salary: 70K/yr (NP generates 70K/month)
Benefits: 20K/yr (that's pretty generous)
NP pays for self in less than 2 months. After the overhead is paid, then the doctor/owner pockets the extra cash.
PCP salary: 150K/yr (generates 70K/month)
Benefits: at least 50K/yr (malpractice insurance is more expensive than NP's which averages $800/yr)
PCP pays for self in 3 months.
If you were the owner of that clinic, which one would you hire? Do you have any friends who own their own clinics? If so, then surely, they can fill you in on the economic advantages of hiring mid-level practitioners. There is a clinic here that fired 4 family practice docs and replaced them with FNP's. That practice is finally in the black and the owners are trying to figure out what took them so long!
Also, Medicare and Medicaid reimburses NP's at 15% less than they reimburse docs for the same service. We can save the taxpayers millions. If a physician works on site with the NP, then you can bill as "incident to" and get full reimbursement for services. That doesn't save the insurance companies money, but it generates more $$$ for the doctor/owner. Do you honestly not know that?