Table of Contents
- Independent vs Hired - Who brings more Value?
- Who Earns more Money?
- Understanding Revenue
- Average Revenue Generated by Primary Care Physicians, Specialists, and All Physicians
- Independent Physicians are loosing ground
- Per Merritt Hawkins Report
- The Business of Health Care Depends on Exploiting Doctors and Nurses
- Challenges in Private Practice
- You are responsible for complete Care delivery workflow
- Factors to consider
- Should I choose to be an Independent Physician or Employed?
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Feb 25, 2022
Independent vs Hired - Who brings more Value?
Independent practices also have lower per-beneficiary costs
Lower 30-day readmission rate compared to hospitals
They reduce avoidable hospitalizations by 33%.
- Robinson JC, Miller K. Total Expenditures per Patient in Hospital-Owned and Physician-Owned Physician Organizations in California. JAMA [Internet]. 2014 Oct 22 [cited 2022 Jan 24];312(16):1663. Available from: https://pubmed.ncbi.nlm.nih.gov/25335148/
- Small Primary Care Physician Practices Have Low Rates Of Preventable Hospital Admissions | Health Affairs Journal [Internet]. Health Affairs. 2017 [cited 2022 Jan 24]. Available from: https://www.healthaffairs.org/doi/10.1377/hlthaff.2014.0434
Who Earns more Money?
Average Revenue Generated by Primary Care Physicians, Specialists, and All Physicians
According to a 2019 report from Merritt Hawkins, hospitals make on average
$2.4 million a year net for every doctor they employ. No wonder they want – and can afford -- to lure doctors into indentured employment
- 2019 Physician Inpatient/Outpatient Revenue Survey [Internet]. Merritthawkins.com. 2019 [cited 2022 Jan 24]. Available from: https://www.merritthawkins.com/news-and-insights/thought-leadership/survey/2019-physician-inpatient-outpatient-revenue-survey/
Independent Physicians are loosing ground
Per Merritt Hawkins Report
Independent vs Employed Per AMA Report (1)
- Physician Practice Benchmark Survey [Internet]. American Medical Association. ; 2019 [cited 2022 Jan 24]. Available from: https://www.ama-assn.org/about/research/physician-practice-benchmark-survey
- Popa R. 33 statistics to know about employed vs. independent physicians — Salary, practice setting shift & more [Internet]. Beckersasc.com. 2020 [cited 2022 Jan 24]. Available from: https://www.beckersasc.com/benchmarking/33-statistics-to-know-about-employed-vs-independent-physicians-salary-practice-setting-shift-more.html
The Business of Health Care Depends on Exploiting Doctors and Nurses
Opinion | The Business of Health Care Depends on Exploiting Doctors and Nurses (Published 2019)
In a factory, if 30 percent more items were suddenly dropped onto an assembly line, the process would grind to a halt. Imagine a plumber or a lawyer doing 30 percent more work without billing for it. But in health care there is a wondrous elasticity - you can keep adding work and magically it all somehow gets done.
Challenges in Private Practice
- Contracting - Contracting with Insurers
- Administrative Tasks - Lead to burnout
- HealthIT - EHR Death by a thousand clicks & Cybersecurity
Death By 1,000 Clicks: Where Electronic Health Records Went Wrong
The U.S. government claimed that turning American medical charts into electronic records would make health care better, safer and cheaper. Ten years and $36 billion later, the system is an unholy mess. Inside a digital revolution that took a bad turn.
You are responsible for complete Care delivery workflow
White Paper - State of the Independent Practice Industry Report
The independent medical practice is the cornerstone of the United States healthcare system, providing a higher volume of care at a lower cost and resulting in better outcomes for patients, as compared to hospitals or larger medical groups. However, in recent years, independent practices have faced difficult challenges due to rapidly changing regulations, payment models and patient expectations.
Factors to consider
- Who is Happier?
- Career satisfaction rate
- 72 percent for employed physicians
- 73 percent for self-employed physicians
Employed vs Self-employed Physicians: Who's Happier? These Are the Tradeoffs
Is the grass really greener, or does it just appear that way? For many physicians, it depends which values are most important to you. Regular hours vs lack of autonomy? Productivity goals vs more night call? Medscape examined the key issues affecting employed physicians, looked at the major differences in satisfaction between employed and self-employed physicians, and came up with some intriguing findings.
Should I choose to be an Independent Physician or Employed?
- Depends on your personality
- Do you enjoy management task/ have skills?
- Do you prefer to be your own boss?
- Is your choice of Specialty highly dependent on being in a health system?
- Is your Location highly dependent on being in a health system?
- Is your choice of Specialty highly dependent on care team and multidisciplinary care?
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