Why your physician costs a lot more if employed by a hospital


An article in Medical Economics explains it all.

“Every day, hospitals and health systems are buying independent doctors and turning them into employed physicians. When they do, hospitals tack a facility fee onto the doctor’s fee every time he or she performs a procedure. These fees add zero value, yet the law allows hospitals to charge them to “cover overhead.”

These money-for-nothing fees are one reason hospitals can afford to pay doctors more than doctors can earn on their own, and lure them out of independent practice—a trend that is unhealthy for doctors and for Americans.”



And they continue to short-staff the nurses.
And claim to care about patients.
Ha ha


Absolutely correct, but the bigger reasons that hospitals can afford to pay doctors more than doctors can earn on their own is because of the extremely complex CMS regulations that require enormous overhead for billing and compliance. This overhead drives the independent provider’s compensation down, making it more profitable for them to work for the hospital (which spreads the cost of that overhead amongst hundreds or thousands of providers).

This is why quacks like chiropractors and naturopaths can keep their doors open with a “provider” and a couple of receptionists who make appointments and take cash…no coding/billing/compliance required (no medicine required either, but that’s another topic).


Today’s hospitals are run by adminiscritters…they don’t care about patients, they only care about metrics.


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