Six Biggest Gripes of Employed Doctors

Kenneth J. Terry, MA


March 02, 2011

In This Article

4. Lack of Business Control

A doctor coming out of private practice is used to running his or her own office. It's a big shock to some physicians when they discover that the hospital has taken control of all their business functions. In many hospital-owned practices, Matthews says, the hospital controls everything from "how the phones are answered to the signs on the doors to compensation. Maybe your x-ray tech is now under the direction of the chief radiology technician of the hospital, instead of the physician."

Because many hospitals are not expert at physician billing and collection, Matthews continues, physicians may resent the loss of control over that function, especially if a production bonus is a big component of their pay. "Physicians are anticipating that they'll be able to collect at their normal collection rate, and they end up collecting less," he points out.

Another area where doctors may lose income, he adds, is in ancillary revenues, which typically form a third of primary care doctors' volume. "When a hospital acquires a practice, those ancillaries are swept up into the hospital, and they're not figured as part of the practice revenues."


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