Merritt-Hawkins revenue generated vs income

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Substance

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Because the survey is confusing, misleading, and rather pointless.

First, they sent surveys to 3000 CFO's, and got 100 responses. That's a 3% response rate. Hard to generalize anything based upon that.

Second, they asked CFO's to basically guess how much various specialties "brought into" the hospital. What exactly does that mean? According to the explanation, any test ordered counts, but not referrals. So what does that mean? If I order a CT scan it may be billed as $1000. But what about the cost of the CT scanner? The radiologist who reads the scan? The techs? etc?

Third, who exactly are they asking? Are these FP's who do just inpatient work? Many PCP's are not hired by hospitals.

Fourth, and finally, do these numbers make any sense? How much does a knee replacement cost? Hard to answer, but the range seems to be $60 - $120K. That's money "brought in" to the hospital. Let's assume though that they mean profit. How much of that knee replacement is profit? Let's assume a 10% profit margin (a number I simply made up). That's $6-10K per replacement. Let's say a surgeon has 2 OR days a week, replacing 3 joints a day (again, I'm making this up). That's 6 joints / week x 40 weeks x $6000/joint = $1.4 million -- and that's all profit.

Now let's look at an outpatient FP doc. Let's say they work 46 weeks, 4 days a week, 20 patients a day, $150 per patient seen = $552K, and that's gross. Subtract out expenses.

Bottom line, something about these numbers makes no sense.
 
How does it happen that family practice brings in 2 million in revenue per provider but is only paid 150k or so a year, whereas specialties that bring in less revenue, such as basically all others but ortho, get paid more?

Yeah, I'm thinking the numbers don't make sense. Think what the average surgeon brings in, per patient - labs, imaging, OR time ($90/minute in some hospitals...), preop, post-op, overnight stays...

Not running down FP, just questioning the idea that FP brings in more revenue than almost any other field.
 
Agree with the above.
Also, I work in a group practice with a bunch of fp and IM docs, and I can tell you that we (the 4 cardiologists who work there) work more hours by far than any of these docs, who do not every have to work weekends, do any call or do any inpatient work at all. Yet their salaries keep going up and ours are being cut (in tandem with cardiology salaries in general). I'm not saying I don't make a good income, but at some point with 5 extra years of training that I have, and with me working probably 25-40% more hours than these guys, it would definitely not be fair to pay them the same. And calculating "revenue generated" is definitely very complicated. I do agree w/the above posts, however. Ortho, some other surgeons, and cardiology generate the most revenue for hospitals, at least historically...not sure how radiology and/or interventional radiology factors in.
 
Be carefull with Merritt Hawkins, they are no alwayswhat they seem. Have dealt with them in the past for recruitment with "guaranteed placement" only to have 2 jobs fall through at the last minute on some glitch from the site that was unforeseen. I don't trust them.
 
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