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This is a great article and a worthy of a deep dive into the topic. A while back someone posted about an important metric called the "physician enterprise value" or PEV. This metric quantitates what a hospital MD is worth to his or her employer. It is useful information for all doctors to keep in the back of their head when they sit down with hospital leadership.
One way to make yourself more attractive to your employer is to do things that increase your PEV: Site of service differential, ancillary fees and services, and referrals to higher reimbursing service lines.
Pain physicians can position themselves well to do things to increase their PEV: Minimize revenue leak by referring in-house for radiology, PT/OT, psych, U-tox, surgical specialists, etc. Perform your own services in high intensity/venues to optimize third-party payment: Perform all routine pain management procedures with MAC & in hospital OR's.
By transparently discussing ways to improve PEV, any employed physician can take a strong position to bargain for more guaranteed income (salary), more favorable working conditions, and greater investments in resources and infrastructure to support their practice.
Which physicians generate the most revenue for hospitals?
Below are four findings from the survey.
1. On average, a primary care physician generated about $1.4 million in revenue for his or her affiliated hospital within the last year, compared to $1.6 million generated by a specialist physician.
2. Orthopedic surgeons topped the list as the physician group that generated the most revenue. A full-time orthopedic surgeon brought in an average of $2.7 million in revenue last year for his or her affiliated hospital.
3. Invasive cardiologists generated the second-most revenue, with an average of $2.4 million annually, and neurosurgeons followed close behind. General surgeons took the fourth spot on the list, generating nearly $2.2 million annually for their affiliated hospitals.
4. Primary care physicians presented the best return on investment for hospitals. In 2015, family physicians had an average starting salary of $198,000 at participating hospitals, and generated 7.5 times that amount in hospital revenue. Orthopedic surgeons averaged a starting salary of $497,000 and generated only 5.5 times that amount in revenue.
One way to make yourself more attractive to your employer is to do things that increase your PEV: Site of service differential, ancillary fees and services, and referrals to higher reimbursing service lines.
Pain physicians can position themselves well to do things to increase their PEV: Minimize revenue leak by referring in-house for radiology, PT/OT, psych, U-tox, surgical specialists, etc. Perform your own services in high intensity/venues to optimize third-party payment: Perform all routine pain management procedures with MAC & in hospital OR's.
By transparently discussing ways to improve PEV, any employed physician can take a strong position to bargain for more guaranteed income (salary), more favorable working conditions, and greater investments in resources and infrastructure to support their practice.
Which physicians generate the most revenue for hospitals?
Below are four findings from the survey.
1. On average, a primary care physician generated about $1.4 million in revenue for his or her affiliated hospital within the last year, compared to $1.6 million generated by a specialist physician.
2. Orthopedic surgeons topped the list as the physician group that generated the most revenue. A full-time orthopedic surgeon brought in an average of $2.7 million in revenue last year for his or her affiliated hospital.
3. Invasive cardiologists generated the second-most revenue, with an average of $2.4 million annually, and neurosurgeons followed close behind. General surgeons took the fourth spot on the list, generating nearly $2.2 million annually for their affiliated hospitals.
4. Primary care physicians presented the best return on investment for hospitals. In 2015, family physicians had an average starting salary of $198,000 at participating hospitals, and generated 7.5 times that amount in hospital revenue. Orthopedic surgeons averaged a starting salary of $497,000 and generated only 5.5 times that amount in revenue.
