Business of EM: Benefits of Physician Ownership
Business of EM: Benefits of Physician Ownership
An independent group contracting with sole-proprietor physicians offers perhaps the simplest and fastest way to get a newly independent practice off the ground. On the plus side, contracting eliminates the need for creating payroll and benefits packages and therefore reduces administrative overhead. Paying physicians an hourly rate on a contractual basis also gives practices the flexibility needed to quickly adjust staffing to meet changes in patient volume. In many markets, physicians can be drawn from a large pool of full or part-time contractors.
The downside of using independent contractors is that there are no built-in incentives for motivating physicians to optimize collections through more effective documentation and coding. This presents a significant and chronic impediment to improving financial performance in an increasingly difficult marketplace. In addition, drawing from a large pool of physicians to meet shift requirements may undermine continuity in the emergency department. It can create a perception of instability in the hospital administration and medical staff. A “revolving door” of new or infrequently seen faces through the emergency department may undercut confidence in emergency services.
The Independent Contractor Model
An independent group contracting with sole-proprietor physicians offers perhaps the simplest and fastest way to get a newly independent practice off the ground. On the plus side, contracting eliminates the need for creating payroll and benefits packages and therefore reduces administrative overhead. Paying physicians an hourly rate on a contractual basis also gives practices the flexibility needed to quickly adjust staffing to meet changes in patient volume. In many markets, physicians can be drawn from a large pool of full or part-time contractors.
The downside of using independent contractors is that there are no built-in incentives for motivating physicians to optimize collections through more effective documentation and coding. This presents a significant and chronic impediment to improving financial performance in an increasingly difficult marketplace. In addition, drawing from a large pool of physicians to meet shift requirements may undermine continuity in the emergency department. It can create a perception of instability in the hospital administration and medical staff. A “revolving door” of new or infrequently seen faces through the emergency department may undercut confidence in emergency services.
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