3.1 - The Businessman

Independent vs Hired - Who brings more Value?

Independent practices also have lower per-beneficiary costs and a lower 30-day readmission rate compared to hospitals

They reduce avoidable hospitalizations by 33%.

Total expenditures per patient in hospital-owned and physician-owned physician organizations in California.pdf243.5KB
Small Primary Care Physician Practices Have Low Rates Of Preventable Hospital Admissions.pdf116.7KB

Who Earns more Money?

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Understanding Revenue

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.pdf2184.0KB

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Independent Physicians are loosing ground

Per Merritt Hawkins Report

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Independent vs Employed Per AMA Report

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YearIndependentEmployed
2018
31.4%
49.1%
2016
32.7%
57.9%
2014
34.6%
52.8%
2012
48.5%
43.7%
AMA - Physician Practice Benchmark Survey.pdf313.2KB

The Business of Health Care Depends on Exploiting Doctors and Nurses

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Challenges in Private Practice

Contracting - Contracting with Insurers

Administrative Tasks - Lead to burnout

HealthIT - EHR Death by a thousand clicks & Cybersecurity

You are responsible for complete Care delivery workflow

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State of the Independent Practice Industry Report - Kareo.pdf5932.1KB

Factors to consider

Who is Happier?

Both

Career satisfaction rate

72 percent for employed physicians

73 percent for self-employed physicians

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?