Contract Negotiation for Early Career Neurosurgeons-Benchmarking Your Value (Joseph S. Cheng, MD, MS)

Video Transcription

Video Summary

In this video, Dr. Joseph Chang discusses physician compensation and the various sources of payment that contribute to it. He explains that physician compensation is influenced by workplace and health system factors. The primary source of payment is professional fees, which include fee-for-service payments from patients or insurance companies. Medicare sets a fixed rate for these payments, usually around $32 per relative value unit (RVU). However, this payment typically does not cover all the costs associated with maintaining a practice. Hospitals receive payments through facility fees, which are bundled payments based on diagnosis-related groups (DRGs). Dr. Chang also discusses the importance of philanthropy in supporting medical practices and the increasing trend of private equity investments in healthcare. He discusses how physicians can benchmark their value based on various metrics and the role of appropriate documentation and coding in the revenue cycle. Overall, understanding the various sources of payment and how they contribute to compensation is crucial for physicians.

Keywords

physician compensation

payment sources

professional fees

Medicare payments

facility fees