Medical Practice Operations - Business Fundamentals 101 - 8 Module Webinar Series with Book-255193

255193 - Article 3

Pdf Summary

The document is a presentation titled "Business Fundamentals 101: Medical Practice Operations" with a focus on finance, specifically physician compensation. It was prepared by Jeffrey T. Gorke, National Director of Physician Enterprise at Wipfli LLP, and is part of an educational series designed to educate about various aspects of medical practice management, including employment opportunities, revenue cycles, legal aspects, operations, healthcare IT, and coding.<br /><br />The presentation emphasizes the historical evolution of physician compensation strategies from the 1980s to the present, highlighting shifts in payment structures across private practices, health systems, academic centers, and private equity-funded practices. It outlines how compensation models have adapted from guaranteed compensation without production expectations in the 90s, to productivity-driven approaches in the 2000s leveraging work relative value units (wRVUs), and the incorporation of additional metrics such as quality and efficiency in the 2010s.<br /><br />The document explains compensation constructs vary significantly and are influenced by market supply-demand dynamics, practice type (private practice vs. health system vs. academic medical centers), and specialization needs. It also covers how private practices typically manage profit sharing from net revenues after expenses, whereas hospital systems may operate on guaranteed compensation models that can lead to situations where physician models are subsidized despite high revenues.<br /><br />Financial management aspects like profit and loss (P&L) in both private and hospital systems are compared, illustrating differences in revenue recognition and expense distribution.<br /><br />In summary, the presentation aims to provide a comprehensive overview of physician compensation models, emphasizing the importance of staying informed about changes in financial and operational strategies within medical practices. Attendees are encouraged to consult current statutes, policies, and legal counsel to ensure compliance and optimization of compensation strategies.

Keywords

physician compensation

medical practice management

finance

revenue cycles

work relative value units

private practices

health systems

profit sharing

financial management

compensation models