surgeon overhead

[Guest copacetic]

do surgeons give a portion of their billings to the hospital, and if so is it typically higher than other specialties given that they are heavy users of hospital resources (e.g. ORs and such). also what kind of percentage would you be talking about? 20%? 25%? etc.

[justletmein]

do surgeons give a portion of their billings to the hospital, and if so is it typically higher than other specialties given that they are heavy users of hospital resources (e.g. ORs and such). also what kind of percentage would you be talking about? 20%? 25%? etc.

 

I have always been under the impression that, at least in major teaching hospitals (in canada, anyway), the surgeons do not pay overhead. In other words, the hospital covers OR and equipment fees and the surgeons are paid a net salary.

 

I could be wrong though, and I'm sure community hospitals work differently although I can't comment on the specifics.

[Mandibular]

all the costs belong to the hospital so surgeons pay nothing

[Guest copacetic]

why would other physicians pay a percentage but not surgeons?

[cheech10]

The OR and associated costs are probably borne by the hospital, but an office lease, admin assistant, etc are unlikely to be. The hospital is reimbursed by the government based on number of patients, length of stay, and diagnosis.

 

Copacetic, few physicians pay the hospital for resources that they use. They "reimburse" the hospital by providing on call services. Most overhead costs (typically office and related expenses) are paid directly by the MD. The percentage of overhead is usually just an approximate number that these expenses take up. Academic physicians do remit a percentage of their billings, but to a academic department, not the hospital. The department then redistributes this amount back to the faculty to fund academic work (research and education).

[Guest copacetic]

thanks cheech, that was very informative, especially since i am hoping to go into academia

[tuss]

There are several different ways this works in different places.

 

In most communities in Canada surgeons work at the hospital without paying for use, but most provide call and cover their inpatients. Offices are usually outside the hospital and the surgeon is responsible for rent, office equipment and supplies, secretary salary, nurse, etc.

 

Some hospital provide an office space, clinic space, clinic nurse, secretary etc. Usually the surgeon will be responsible to pay a percentage of their income (usually 15% of their gross income). This is a nice option if you are starting out because you always take home 85%, but if you are a high billing surgeon you are paying a lot for what you get.

 

Many academic surgeons are now salaried. They work at the hospital and are paid a salary for their services regardless of how hard they work. In exchage for salary they get secretarial support, office space, secretary, etc.

 

I work in a community hospital, don't pay anything to the hospital, pay my own secretary, rent etc. My overhead is less than 15% on a good month, but if i take vacation and don't make any money it is quite high.