You're right - this type of data should be read as reimbursement not covering fair compensation and costs for physician services. However, it's tempting for the bean-counters to read it as revenue is low, so we must decrease expenses. In other words, replace MDs & DOs with PAs & NPs and decrease physician pay.
Hi Sam,
Good question.
The full Q3 2023 Kaufman Hall Physician Flash Report: https://www.kaufmanhall.com/sites/default/files/2023-11/KH_PFR%20_2023-10.pdf
The measure definition: Investment/Subsidy per Physician FTE: Subsidies represent net
patient service revenue minus total expense. Subsidies are divided
by physician FTEs.
Deeper dive into KH's measures: https://www.kaufmanhall.com/insights/article/metrics-matter-todays-physician-enterprise
You're right - this type of data should be read as reimbursement not covering fair compensation and costs for physician services. However, it's tempting for the bean-counters to read it as revenue is low, so we must decrease expenses. In other words, replace MDs & DOs with PAs & NPs and decrease physician pay.
Troubled waters indeed.
-- Leon