Medical Director fees

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Full Member
10+ Year Member
Jun 16, 2008
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I'm just trying to get an idea of what's reasonable for a medical director's fee for running a lab in a 250 bed hospital. Anybody want to help me with a ballpark?


The Imelda Marcos of Path
15+ Year Member
Jan 19, 2005
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It depends on your negotiation skills, but I have heard of 120 to 140k being the range for larger hospitals. Some places do a fee plus professional component billing on the lab tests which can also add up.

Medical director fees are also contigent on geographic location. If there is a glut of pathologists, you can bet there will be one who will do it cheaply.


Sound Kapital
15+ Year Member
Mar 17, 2003
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To give people some background. Medicare doesn't pay pathologists PCCL (professional component of clinical lab). They say it is part of the part A and the hospitals have to give pay it to the pathologists.

Most hospitals have their pathologists do timing studies and calculate what percent of the pathologists time is spent of PART A activities (which can include lab supervision, reviewing protocols, meeting with administrtation, even doing conferences/tumor boards).

The formula I am familiar with is the administration has an hourly wage which they say is fair, then they multiply that by how many hours your group did PART A actitivities during the given timing study. Then they generalize that throughout the year. Then they take the percent of medicare admissions times that number, and that is the number that goes to the group of pathologists. I agree that a pathology group would be lucky to get 60k from a for profit hospital. Also if you have any outpatient business the hospital will usually find a way to get that 60k back in charges related to your outpatient business if you are using hospital staff or space.

The killer is private insurers used to pay PCCL to pathologists and it was quite lucrative but most don't anymore and justify it by the medicare argument, but that is total BS as private insurers don't have PART A and a DRG payment and that sort of thing.

Basically in the world of community pathology you manage the lab in exchange for the right to the AP. That's how you make your money.
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