I honestly think it isn't even that--the big problem is that ESRD triggers medicare at any age and as a result the payor mix is terrible, probably the worst of any specialty, because it selects for Medicare. If medicare didn't cut reimbursements by record amounts in the face of rising inflation this wouldn't be so bad but here we all are.
Yes procedures help immensely in terms of upping revenues but even an E/M only clinic that runs lean can be very profitable but if you are taking 80-90% CMS that cuts reimbursement by 2-6% annually you are doomed. As an example, I bill a chest ultrasound, CMS pays $50, private insurance pays anywhere between $150-600. I have to do a minimum of 3x the amount of work on CMS patients for a single private patient. System is beyond ****ed, can't wait for it to implode.
good point, that definitely plays a big role
but the way nephrology as a practice is structured just adds additional barriers to financial success in the private practice market
if we did a comparison of nephrology to general cardiology (which one thinks about it is
analogous in practice in certain ways though different in many ways)
let's use a private practice model and not an employed hospital employee model since usually its the private practices that run lean and try to cut overhead and have the doctor do more tasks than just being the doctor.
Both see inpatient consults and both see outpatient consults. They often see the same patients as well that overlap.
Inpatient is inpatient. The same hospital codes. When a private cardiologist who rounds inpatient orders inpatient tests, that cardiologist is probably not the one billing for those echos, EKG, nucs, caths etc... the same goes for the private nephrologist who rounds inpatient and orders renal sono, NM lasix scan, CTAP etc...
As for outpatient , both see office consultations.
The cardiologist usually does a 12L EKG and takes a history and exam. Then orders TTE, Holter, US Carotid, US LEA, and treadmill stress test to be done in the same office by technician and cardiologist interprets (if has vascular medicine board which certain cards programs will have the fellows get during their 3 year gen cards fellowship then can do those vascular sono studies). Sure prior auth is needed for TTE and those others can bed one over the course of several visits. The cardiologist sits there writing reports and then sharing result swith patient on alternate days.
The nephrologist has no such office procedures. If the nephrologist has an HD panel, the nephrologist then travels to the HD center. If lucky and has a good set up, then can go to the center nearby without too much travel time. But always hustling around. If unlucky, then one has to hustle around and all that productivity is given to the senior partners who are using you as a glorified midlevel in terms of revenue sharing
For a solo provider (rare but it happens), when starting a practice without ESRD patients, who has to literally go to the hospital setting, hang out by the ER and the ICU and be available and be a "doctor's doctor" to get those ATN patients who might need HD or to get those CKD5s who are close. Yes every specialty has to work at it to get referrals and consults.
But least other more comfortable subspecialties can just "do everything when the patient walks into the office." A doctor with office procedures can hang the shingle and advertise and eventually will build up patients.
Even if a nephrologist hung up a shingle, one gets a lot of non-procedural AKI, CKD< electrolyte, issues
a GN is interesting enough but it's a lot of work. arranging a renal biopsy is not bad. but arranging for Rituximab at an infusion center when you do not have one is just a lot of extra uncompensated work.
That whole "you have to travel around everyday to make your money" is really not something I can think of is present for any other subspecialty.
anyway the point remains
If you love the beans do it and go academic. You will have a great career.
If you don't love the beans and think you can make it rich as nephrologist, you better have a plan in place or else you may end up losing the gamble and losing prime years of your life
If you are a resident who failed to match PCCM or cardiology, it is illogical to take a scramble spot for nephrology. Even if you can see yourself doing academic nephrology and have second thoughts about your competitiveness for cards or PCCM, you would want to apply NEXT YEAR and go into the top academic renal programs instead.