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How much revenue do physicians generate for hospitals?


Posted by Anonymous at 4/13/2016 12:57:19 PM

How much revenue do physicians generate for hospitals?


New survey examines revenue physicians generate on behalf of their affiliated hospitals


By Travis Singleton


 Average Net Physician Generated Revenue

How much revenue do physicians generate on behalf of their affiliated hospitals through admissions, tests, prescriptions and other activity?


Merritt Hawkins periodically addresses this question through a survey of hospital chief financial officers we first conducted in 2002. The 2016 version of the survey now is available and the results hold some interesting implications for today’s evolving healthcare system.


Merritt Hawkins 2016 Physician Inpatient/Outpatient Revenue Survey tracks the net revenue that 18 different types of physicians generate on average for their affiliated hospitals. The average for all specialties is $1,560,688, up from $1,448,136 when the survey was last conducted in 2013. Average annual revenue generated was up for 10 of the medical specialties tracked relative to 2013, down for five and flat for three. The highest revenue generating specialty tracked is orthopedic surgery at an annual average of $2,746,605.


The survey suggests that capitation value-based payment systems have not to date reduced the volume of revenue-generating activity performed by physicians, and it reinforces the continued prevalence of the fee-for-service model. It also raises the question of how health providers can do more than embrace the ideology of pay for value and get to the reality.


The survey also allows for a cost/benefits analysis comparing physician salaries to the amount of net revenue they generate. Merritt Hawkins’2016 Physician Inpatient/Outpatient Revenue Survey, and other thought leadership resources, can be obtained first by members of our LinkedIn Thought Leadership Forum or download here


What tips or feedback do you have on how to make the transition from volume to value?


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Travis Singleton is Senior Vice President of Merritt Hawkins, the nation’s leading physician search firm and a company of AMN Healthcare. He can be reached at travis.singleton@merritthawkins.com. If you are interested in learning more about Merritt Hawkins’ services, please request a call to speak with one of our helpful marketing consultants.


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