54.1% Overhead For Otolarngology?

[thepit]

My friend sent me a link to a leaked AMA report regarding physician billings and I was really surprised to see Oto having one of the highest overheads at 54.1%. Endocrine was also listed as having an overhead of 55.9%. For comparison, specialties traditionally associated with high overhead like optha and diagnostic rads had overheads of 45% and 55% respectively. Anyone have an explanation for what's up with these numbers?

 

For those interested, here is the link to the article, report is at the bottom, with overhead numbers on page 8. http://news.nationalpost.com/health/leaked-report-offers-window-into-the-medical-one-percenters-and-growing-concern-over-md-pay-inequity

 

 

[BernieMac]

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[Lactic Folly]

http://www.medscape.com/features/slideshow/compensation/2016/public/debt-and-net-worth#page=8

[indefatigable]

Different provinces have different fee schedules.  AB physicians are among the better compensated in general - and clearly even more so in certain specialties.  AB was experiencing a lot of growth, although now it looks like it's a different situation.  Just because a specialty is or isn't highly re-numerated doesn't always have a direct effect on competitiveness.    

[hero147]

Those numbers seem wayyyy higher than the ones posted on the CMA website. I wonder if Alberta has a lot of physicians who work in rural areas.

[bekaa]

The Respirology number is what shocked me a lot - I didn't know they were that well remunerated. 800k afteroverhead? Is this an Alberta thing specifically or is this an indicative average of respirologists across Canada

[simpsons]

Yea not buying those all those numbers. The data from AHCIP is on point but fails to account for private/sessional/academic/contract payments accurately. The overhead numbers are self reports from a possible very small sample size (how many respirologists were surveyed?). Not sure if im supposed to believe this more because its the news says "leaked."

[Edict]

wow what?? Mind blowing that there are specialities where the average NET (AFTER overhead) pay is ~700K for 6 specialities and 10 specialties make over 500K and 18 specialties make over 400K AFTER OVERHEAD in AB....average Family Doctor makes 250K AFTER OVERHEAD, am I missing something? Maybe because I didnt grow up with rich parents but how can anyone want more than 250K? What could you even do with all the money? you could have a household where only one person works, making 250K and that puts you in the top 1% of all Canadian families already..

 

no wonder Derm is so competitive....they make 800K after overhead....also hold up this is just govt billings...I know that derm can also earn money privately....does that mean they can make a total of 1 million+ per year after overhead...oh wow..

 

There are always ways to spend money, once you hit a certain income expenses can grow rapidly. Theres a huge luxuries market out there which i'm sure we all know. Just like how we ask how come businessmen keep chasing money even after they are multi millionaires? There always ways to spend money and if you can't theres always the next generation to think about. 

 

Realistically no one needs that much money, in fact 50k is enough to have a decent living in Canada, but there are ways to spend money for sure. Thats why even NBA stars sometimes go bankrupt.