Recently, MedPage Today published its 2018 Salary Survey. The report analyzed the salary information submitted by 7,753 healthcare providers. According to the survey results, on average, physicians made $8,039 less in 2018 than they did in the 2017.

To add insult to injury, many physicians are also reporting that their workload is increasing due to a variety of factors such as regulatory compliance requirements that bury them under a mountain of paperwork. In fact, in the same survey, recordkeeping and burnout were listed as the worst aspects of their jobs by more than half of the respondents.

Despite the push for value-based payments, most physicians’ salaries are tied to a fee-for-service model. Therefore, many physicians believe that the only way to increase their earnings is by increasing patient volume. While boosting volume is one way to grow revenue, there is a drawback to this method: the finite number of hours in a day.

Physician compensation is tied to the medical practice’s profitability – the more profitable the practice, the higher the physician’s compensation can be. Typically, there are ample opportunities to improve overall profitability within a medical practice. Patient volume is just one area to consider.

In fact, while working with medical practices across the country, Practice Partners identified 5 areas that, when optimized, can significantly improve a practice’s bottom line:

  • Reimbursement
  • Billing/Collections
  • A/R
  • Expenses
  • Access

Over the next few months, we’ll discuss each of these topics in a series of blogs titled, The 5 Levers of Practice Profitability. The goal of this series is to help independent physicians discover how they can enhance the business side of their practices to achieve their financial goals.

Contact us to learn more about how Practice Partners can help you ensure your medical practice is positioned for long-term success amidst an everchanging healthcare industry.