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- Attending Physician
Laughable nonsense. Residents are paid from federal GME funding. Not only that, but the GME funding per resident is greater than the resident's salary. We're not only free labor for the institution that "employs" us, the institution actually gets paid to allow us to perform free work for them. It just absolutely sickens me that instead of fighting for their own interests like every single other goddam profession, people in this field will go to any length including outright lies and fabrications in order to sabotage themselves and their colleagues. It's like some kind of disgusting masochistic fetish, I truly cannot find any other logical explanation for it.
This is complicated, and you're never going to get a clear answer here. I've posted about this before, but you cannot make this statement flat out. that residents are profitable.
Let's use the simplest example here - an inpatient internal medicine teaching service (ignoring the students) might typically consist of an attending, a senior resident, and two interns. Depending on how their call schedule is arranged, they might see 10-20 patients - most common average is probably 15. The team sees those 15 patients, rounds on them, and bills insurance for those 15 patients. All four individuals are drawing an income here.
What would happen if the residents didn't exist? Well, there would just be an attending. And an attending hospitalist routinely sees... 10-20 patients. Probably an average of 15. By themselves. And bills the insurance for them. And only gets paid one income (though probably higher than an academic attending).
It's pretty obvious in this situation that if it wasn't for the government subsidy for resident salaries, that the former scenario here is a money-loser for the hospital. Yes, the academic attending has a much "easier" life - particularly when it comes to not having to write notes - but the hospital doesn't care about that. The net productivity of adding the residents is pretty negligible here.
The hospital additionally may have to eat the cost of any inefficiencies caused by teaching teams - this is most visible with Medicare patients, where the reimbursement to the hospital (as opposed to the physicians) is a flat fee based on diagnosis and complexity rather than being able to charge for every individual thing done. If the teaching teams keep patients one day extra in the hospital on average, or they order just a few more blood tests, the hospital loses significant amounts of money from any payor that reimburses based on DRGs (as opposed to paying a la cart).
In other scenarios - clinic work, surgical services, etc - the residents do allow the attending to see more patients and perform more work - but whether in the aggregate that is worth more than what you're paying the residents is hard to say, particularly for one major reason:
The residents have to be taught. You can't just give them scutwork and use them to extend your ability to bill - assuming you aren't a terrible person, you have to actually spend time and effort developing them into independent physicians. If they feel comfortable with a low level task, that's wonderful - but that also means it is time for them to move on to other tasks and you to give that low level task to someone else that is less comfortable with it (i.e. a lower level resident).
Every time someone analyzes whether residents are a net economic benefit or cost, the assumptions made get a different answer. I think that if the Medicare (and equivalent) subsidies didn't exist, most residency programs would actually be a net loss for the system, but you can easily argue against that.
Oh, and don't forget there's tons of other costs the residency program needs to pay for on top of the resident salaries:
A) Payroll taxes
B) Benefits - both direct benefits for the resident (medical, dental, whatever) and malpractice insurance
C) Program directors salary (typically half of it but it may be more or less depending on the specialty) - the PD isn't allowed to be full time clinical work so they have time to dedicate time to the program
D) Program administration (like the coordinator, educational activities, all the paperwork involved with keeping a program accredited, recruitment/turnover every year)
The cost of having a $55-60k/year resident probably does go up to at least $100k/person - which is what the government subsidizes each resident at. Opening new programs without a source of subsidy is often not feasible.
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