medical economics

How much do they make?

 Versus how much they owe in loans for education!

The typical physician can count on a bill of nearly 400,000 for post secondary High School education costs.  While some educators may feel that this figure is high, many Physicians might argue that this is low because it does not factor in the costs of living during Internship and Residency.  Whichever, the true costs this is a high no matter which esoteric manipulation lowers or raises this number.

So what can a physician expect to make in the marketplace after the education requirements have been met?

Acording to a study by the Department of Health and Human Services the typical Family Practicioner can expect to make $138,000.00 in 2003 dollars [there are several studies which suggest that while physician billings have grown since that time real income has either remained stagnant or decreased slightly since 2003].

According to the American Academy of Family Physicians study on practice management the typical practice bills for 5720 total unique visits per year.  These visits generate average total billings of $483,500.00 [This represents billing of about $85.00 per visit].

But  the Physician only makes about $25.00 per visit in take home pay. Staff costs about the same amount [typically about 4 full time employees costing the practice with benefits about $33,000.00].  This leaves the overhead costs at about $35.00 per visit.

CME and CMS surveys and reimbursements confirm these figures.  Overhead costs include insurance, billing, collections, bad debt, reimbursement write-downs, rent, office supplies and equipment. 

But the real question is this?  Does a $400,000.00 dollar education investment for a $138,000 dollar job make economic sense?  How many patients will Doctors see per day after health care reform? 

Bill Carroll