Along with patient care, revenue generation is a key focus for all types of healthcare providers. Generating sufficient revenue is how providers and hospitals are able to continue to provide care and treatment to their communities, and different types of physicians are able to contribute in different ways. Merritt Hawkins recently conducted their 2019 Inpatient/Outpatient Revenue Survey, which tracks the annual net revenue that full-time physicians generate per year for their hospitals. The findings of this survey revealed the positive impact that orthopedic surgeons have on the financial health of their hospitals, so read on to learn more about this report and the information it provides.
Yearly Revenue Generation by Orthopedic Surgeons
In order to determine how much revenue each type of physician generated over a 12 month period, Merritt Hawkins included inpatient and outpatient revenue in the study, derived from hospital admissions, tests, treatments, prescriptions, and procedures either performed or ordered by the physician. The survey found full-time cardiovascular surgeons at the top of the list in terms of revenue earned for their hospital, adding up to about $3.7 million per year. Orthopedic surgeons claimed the fourth spot, generating almost $3.3 million for their hospitals per year. The study looked at physicians in 18 different specialty areas, with the average amount of revenue being close to $2.4 million. Orthopedic surgeons bring in nearly $1 million more than the average physician type for their hospitals, which shows how crucial a role they play in overall hospital earnings.
Study Findings: Cost/Benefit Analysis
Along with a review of the amount of revenue generated yearly by physicians for their affiliated hospitals, the survey also provides a cost/benefit analysis. This data compares physician type salaries to the amount of revenue they generate to analyze their overall value to the hospitals they work for. The study found that orthopedic surgeons generate around six times their average starting salary ($533,000) for their hospitals yearly.
Hospital Visit Changes Over Time
Although the cost per hospital visit has increased over time, the number of inpatient stays has decreased or remained flat in recent years. This may be the reason why the amount of revenue generated by physicians at hospitals has increased by 52% since 2016. Outpatient hospital visits are becoming far more common than they used to be- they have more than tripled since 1975. The average cost of an outpatient visit has increased over time, and revenue generated by physicians has grown with the aging population needing to use healthcare services more often. Demographics play a larger role in physician revenue than most people realize because as people grow older, they are more likely to seek out healthcare services from different types of physicians.
The Key to Orthopedic Revenue Generation
Whether an orthopedic surgeon is affiliated with a hospital or runs their own practice, there are a number of factors that influence revenue generation. Proper Revenue Cycle Management (RCM) ensures that physicians are paid for every service rendered, and receive what they are owed in an efficient manner. Services like practice management and consulting are also crucial because they ensure that a practice is not overpaying for basic costs, and also helps boost the overall profitability of the practice. For hospitals, physicians are extremely valuable. Going beyond providing patient care, they drive the financial health of their hospitals by bringing in revenue, which allows the hospital to stay up and running and cover necessary costs.
Boost Your Orthopedic Revenue Generation with Healthcare Information Services
Orthopedic surgeons play a very important role in healthcare as a whole, so if you are involved in an orthopedic practice, make sure that you’re operating at your highest potential with the help of HIS. We offer RCM and practice management & consulting services to orthopedic practices to help them maximize reimbursements, enhance profitability, and create a sustainable environment so they can provide patient care for years to come. When you work with HIS, you’ll gain a true partner who is wholly invested in the success of your practice. To learn more about Healthcare Information Services and the work we do for orthopedic practices, please contact us today. We look forward to working with you.