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Doing the math on physician employment
John M Harris1, H J Simmons, Rudd Kierstead
1DGA Partners, Bala Cynwyd, PA, USA. jharris@dgapartners.com
Abstract:
When assessing the costs and benefits of a physician employment strategy, it's important to consider not only the direct costs and benefits of the strategy, but also its indirect benefits, such as increased revenue as a result of eliminating admission-splitting by employed physicians. The indirect risks of physician employment, such as eliminating independent physicians, can be minimized by adjusting timing to match the market's physician employment stage. The strategy will work if the combined direct and indirect benefits are significant enough to outweigh the direct costs.
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