Understanding The Money Trail
Check this out. What you will see is a thoughtful article by a business minded physician. The point of the article? Doctors need to “understand their worth.”
For example, a recent article reported that the average hospitalist brings in about $2.4 Million in annual hospital revenue. SO. Doing some rapid calculations, this means that the doctor is operating with 90% overhead. Is this “fair?” As usual, who knows what “fair” actually means???
As this blogging physician freely admits, knowing how the money stream flows won’t necessarily get a hospital to pay the doctor more. But having an understanding of the economics surrounding a doctor’s practice seems like a logical first step in the direction of understanding her worth.
Bottom Line. Hey, wait a minute. Maybe this would be a good idea for all of us. Understanding our financial contribution to our employers might well serve as a valuable reality check.
In the research agencies and consulting businesses that I have run, we think this way all the time and compensate our team members accordingly. How would you go about doing this if you work for a drug company? I would need to give that some more thought!