<p>There is something people need to understand about running a private practice that is different from many businesses. Let’s say you sell something (clothes, cars, whatever). Each salesperson is bringing money into the business. Out of that money is overhead- rent for the space, upkeep, utilities, advertising, and support staff- people who run the office. One can have more salespeople than support staff, all bringing in money and all those salespeople can be in the same store with maybe a small desk or cubicle as a car salesperson uses.Somewhere between what money comes into the business and what comes out is what the owner gets to keep.</p>
<p>In a doctor’s office, there is a large ratio of support staff per doctor or provider. Only the providers such as docs, PA’s. NP’s are able to bill for services and bring income into the practice. The rest of the support staff- secretaries, office managers, insurance billers, nurses, typists for medical records, are not people who bring income into the practice. However, they are essential parts of it, and should earn their salaries and benefits too. For every doc, there needs to be at least 3 support staff to do the billing, schedule appointments, nursing or medical assistants and office management. For every doc there needs to be an exam room, medical supplies, and an office to do personal work, dictations, phone calls and electronic medical records. Therefore a practice can’t function well with more docs than support staff and each doc requires extensive overhead costs. Out of that $3000 that appears to go to the doctor, he or she may keep only a fraction of it. </p>
<p>So what happens when insurance cuts a doctor’s fees? The landlord doesn’t reduce the rent, the supplies don’t get cheaper, and if the doctor tells the staff “sorry you get less pay this month” the employees would be in dire straights. Often they are hard workers who the doctor values and would not consider doing this to them. So, when insurance cuts fees it is the doctor who absorbs the loss. If a doctor made $3000 and after overhead, kept $1000, and insurance cut it to $1500, the practice would no longer be able to run. With inflation, overhead costs are rising, and doctor fees are diminishing. Many doctors are becoming employees of larger corporations and hospital because of this. </p>
<p>So, what happens to doctor autonomy and the personal aspect and satisfaction in the doctor-patient relationship? The same thing that would happen to a marriage if someone else told you how to relate to your spouse, timed it and coded it, and the insurance CEO, hospital administrator and other regulators were also sleeping in your bed. </p>