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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

Healthcare Financial Management : Journal of the Healthcare Financial Management Association

|December 24, 2009

Summary

Physician employment strategies yield benefits beyond direct costs, including increased revenue and minimized risks. Success hinges on ensuring combined direct and indirect advantages outweigh initial expenses for sustainable growth.

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Technical Approach for Infrared Tracking for Soft Tissue Navigation with a Holographic Head-Mounted Display and Preclinical Validation

Technical Approach for Infrared Tracking for Soft Tissue Navigation with a Holographic Head-Mounted Display and Preclinical Validation

Published on: September 2, 2025

Area of Science:

Healthcare Management
Health Economics
Physician Workforce Studies

Background:

Physician employment strategies are increasingly common in healthcare.
Assessing the financial viability of these strategies requires a comprehensive cost-benefit analysis.
Understanding both direct and indirect financial implications is crucial for strategic decision-making.

Purpose of the Study:

To evaluate the comprehensive costs and benefits of physician employment strategies.
To identify and quantify indirect financial benefits, such as revenue enhancement.
To explore methods for mitigating indirect risks associated with physician employment.

Main Methods:

Analysis of direct financial costs and benefits associated with physician employment.
Quantification of indirect benefits, including revenue increases from reduced admission-splitting.
Assessment of indirect risks, such as the impact on independent physician availability.
Strategic timing considerations based on market physician employment stages.

Main Results:

Direct costs and benefits are primary considerations in physician employment.
Indirect benefits, like increased revenue from eliminating admission-splitting, significantly impact overall financial outcomes.
Indirect risks, such as the displacement of independent physicians, can be managed through strategic market timing.

Conclusions:

Physician employment strategies can be financially successful when both direct and indirect benefits are substantial.
Careful consideration of indirect financial factors and market dynamics is essential for optimizing physician employment strategies.
The long-term success of physician employment models depends on a holistic approach to cost-benefit analysis.