How Much Revenue Do You Generate Each Year for Your Hospital?
Dear Colleagues:
In keeping with my strategy, which is to curate information of interest from all the noise we have via social media and conventional media, I would like to share an article of interest. This article from Merritt Hawkins is entitled “Survey: Physicians Generate an Average $2.4 Million a year per hospital.” Keep in mind this is the average for all physicians and is based on a survey of Chief Financial Officers, which asked for data on physicians who created hospital revenue in 18 different specialties. This included both inpatient and outpatient revenue.
Orthopedic Surgeons ranked third with an annual revenue of $3.3 Million per year, after invasive cardiologists ($3.7 Mil) and neurosurgeons ($3.4 Mil). For orthopedic surgeons, this is about 6x the average annual salary of $533,000. Moreover, if we consider this multiple, then a very successful orthopedic surgeon with a salary of $1,000,000 would be expected to generate hospital revenue of $6,000,000/year.
Why does any of this matter? Well, in today’s world of high hospital revenue and low margins, busy physicians are important to the fiscal health of their hospital systems. I previously posted on my blog on “The Cost of Physician Turnover.” If one considers the annual value of a busy physician, then the departure of that individual and the hiring time to replace him/her, and lag-time for ramping up clinical practice, it will cost the hospital millions of $$$ to replace an individual physician. So, I wonder if each of you feels valued by your hospital, and if so, how? What do you think?
Some additional posts of relevance are listed below:
Kind Regards,
Jon “JP” Warner MD
Founder, CSS
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