Employed Doctors Earn More Money Than Independent Physicians

Employed Doctors Earn More Money Than Independent Physicians.
The percent of doctors who are now employed by hospitals has increased from 25% to 51% from 2012 to 2022.
One potential cause of that trend is that doctors employed by hospitals systems can make more money than independent physicians.
A survey by the American College of Cardiology found that cardiologists employed by hospitals made $645,388 per year, while independent cardiologists made $588,272 per year.
Additionally, incomes of employed cardiologists rose by 4% from the previous year, while the incomes of independent cardiologists fell by 2.7%... so the income gap is widening.
The reason that doctors employed by hospital systems can make more money than independent physicians is because employed doctors can have their income additionally subsidized by the hospital facility fees that they generate by ordering tests and performing procedures.
The Stark Law was intended to prevent these hospital 'kickbacks' to doctors, but physician employment effectively circumvents this spirit of the Stark Law.
Sources:
Doctor Employment Stats: workweek.com/2022/04/28/futur...
Cardiologist Salary Survey: cardiovascularbusiness.com/to...
Hospital Revenue by Doctor Specialty: • Hospitals Measure Doct...
Start Law: oig.hhs.gov/compliance/physic...
Texas Heart Hospital: www.justice.gov/opa/pr/texas-....
AHealthcareZ is 200+ Healthcare Finance Educational Videos.
💥 BOOK: Check out Dr. Bricker’s Book 16 Lessons in the Business of Healing here: www.ahealthcarez.com/healthca...
AHealthcareZ Viewers Include: Employee Benefits Professionals, HR, CFOs, Insurance Brokers, Benefits Consultants, Doctors and Nurses in Leadership Roles, Hospital and Health System Administrators, Health Insurance Carrier and PBM Professionals, Pharma and Med Device Professionals, Academic Professors and Students in Healthcare Administration and Public Health.
90,000+ Views Per Month Across All Platforms.
Visit AHealthcareZ.com to Subscribe to the Healthcare Finance Video Newsletter.

[@RaminR]

Another great video Eric!

[@ahealthcarez]

Thank you for your feedback.

[@lyonelcarre2892]

Employed physicians pay a higher tax rate, hence it is either a wash or the self employed still take more home

[@ahealthcarez]

Thank you for sharing your perspective.

[@egoljo]

How do employed physician pay higher tax rates?

[@moejoe13]

@@egoljo W-2 employees at high incomes are taxed out the ass. Its possible to pay less taxes and have more deductions if you're 1099 or K1

[@OwenRULESSS]

Love your videos! Thank you

[@ahealthcarez]

Thank you for watching and for your feedback.

[@thatwasinteresting3319]

For now. But you are no longer viewed as a professional but just another line item on a spread sheet that needs to be "managed". As the system gains more power they will cut salaries, increase patient load and diminish doctor independence. I have seen it in the area where I work. Physician morale is at an all time low. Older experienced doctors are retiring in droves and younger ones are only working part time. If a physician strays from the Hospital's guidelines they are usually harassed and brought into "compliance" even if it hurts patient care. Physicians are slowly being replaced by APNs and other "providers".

[@ahealthcarez]

Thank you for sharing your perspective.

[@user-ly2lp2bc7e]

Being employee is less headache. Also, doesn't to deal with billing, insurance, and prior authorization. Hospitals have more support staffs.

[@ahealthcarez]

Thank you for sharing your thoughts.

[@chrislee1930]

Thanks for the great video. Do you think there will be similar trend for surgical specialties?

[@ahealthcarez]

Yes. Thank you for watching and for your question.

[@tuvale]

very interested to hear your thoughts on California's ban on physician employment

[@user-oi5mr5kq5u]

Is this situation different for independent physicians who own and operate in private facilities? I was under the impression that in that scenario they are able to recuperate the facility fees.

[@ahealthcarez]

Depends. Doctors cannot own a hospital. If ASC, must do procedures there. Safe Harbor exception for them.

[@NuestrosVinos]

Your assessment is incorrect and there are so many variables to come to that conclusion. Independent physicians have more freedom and tax advantages than a hospital employee. It really depends on the market you are working. You can actually earn less but bring more home. Stress test 2,200?

[@ahealthcarez]

Thank you for sharing your thoughts.

[@joseloor4762]

Hahaha not true