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Payers Eye Your Wallet


For most physicians, the primary source of revenue is from contractual relationships with third party payers.  In essence, these third parties have an eye on your wallet: what is the minimum amount they can pay you for your services? This is not a judgement, it's statement of fact. The relationship with you is purely financial, not personal.

There are many types of contractual relationships: individual 
physicians with medical groups; medical groups with larger medical groups, IPAs or health plans, and separate and distinct relationships between physicians and hospitals.  There are also many forms of reimbursement: capitation (pm/pm, contact, RVU-adjusted), case rates, stipends, fee-for-service, shared-risk, full-risk, per diem, and so on.  

Most physicians get caught up on the just "Compensation" exhibit of a contract.  Yes, those numbers are very important; however, the words within the document are even more important. Why? Because they can alter the numbers you see on that exhibit. 



The Staff Holds Your Wallet


The staff (both clinical and administrative) of any practice (large or small) is key to the success or failure of a practice.  Although a patient has selected you, the physician, to provide management of his or her healthcare, the patient will have more interaction with your staff than you.  It is fair to say that most staff are poorly trained, often lacking basic computer skills, have limited skills in professional  interactions, and may struggle in situations which require critical thinking. It is also fair to say that most physicians believe their staff to be just the opposite.  

The healthcare revenue cycle is complex and most staff have limited understanding about health plans, eligibility, and copays, let alone the more consumer-directed plans called Health Savings Accounts. Poorly trained staff means money is not being collected when due and money is often "written off," because of a lack of understanding of patient benefits. Sadly, most physicians do not know that any of this is happening.