| Physicians
Practice's
Ask the Experts
is a question-and-answer forum featuring
leading practice management experts who may or may not be
employed by Physicians Practice. Physicians Practice receives
questions from physicians, office managers, office administrators
and others. Have a question about the operation of your practice?
Visit www.PhysiciansPractice.com.
Your question will be answered within three business days.
Q I
am planning to set up a movable ultrasound service for doctors’
offices. We will do billing as well. Since I already have
my own practice and tax ID set up, can I use the same one,
or do I need to apply for another?
A Here
is a response from Owen Dahl, an experienced practice administrator
and consultant:
As I understand the question,
- The practice currently has all the appropriate tax ID
and provider numbers.
- The practice is currently offering the ultrasound service
to its patients and has done the billing for it under its
tax ID and provider numbers.
- The practice, for some valid reason, is changing its
approach to providing the same service. I assume there has
been a cost-benefit analysis applied to this matter and
the best decision for the practice is to contract these
services.
There is no need to seek another tax ID or additional provider
numbers, and there is no major problem related to billing
procedures, barring a carrier-specific need to disclose that
these services will be contracted rather than provided directly.
I suggest contacting the local carrier Web site or provider
representative to obtain any specific information.
There is, however, a definite need to have a valid contract
in place with the ultrasound equipment vendor, with fees based
upon fair market value, etc. Medicare or other payers may
request to see this contract.
This is a service that was provided by the practice and will
be continuing, so it should not be a difficult switch.
Q
I’m thinking about accepting a new job as manager
of an ambulatory surgical center (ASC), but I’m not
sure my experience is sufficient. Where can I obtain knowledge
quickly?
A It’s
hard to learn everything overnight, especially about a specific
type of practice, but if you’ve simply noted a few issues
that make you uneasy, consider calling the managers of ASCs
in your state to ask whether they’ll meet you for lunch
or spend 20 minutes on the phone to talk to you about their
key challenges, give you advice or provide insight into the
issues that concern you. Your future competitors might even
be willing to lend you a hand to some extent. People love
to be considered experts and are usually willing to help a
peer.
Or you can pay a consultant you respect for the time it takes
to give you a crash course.
Specific books and articles also are easy to locate in these
days of Internet access and Amazon overnight delivery.
Keep in mind that assuming you didn’t exaggerate anything,
your future employers think your experience is sufficient.
You can always extend your education in a more thorough and
careful manner once you start.
Q
I work as an administrator for a two-physician practice. The
physicians take a management salary for managing the practice.
Do you have any information on similar practices that also
pay their physicians a management salary and approximately
the average dollar figure of that salary?
A
In my experience, it’s somewhat unusual to see management
salaries in a two-physician practice in which both physicians
handle management tasks and there is an administrator to
boot. I find it more common in practices with a compensation
structure built on productivity in which a physician’s
clinical productivity is hampered because of the time that
physician devotes to management tasks and to serving as
the only real go-to physician contact in this regard. In
such a case, that physician needs to catch up and be paid
reasonably.
Management salaries can be paid based on actual
time spent at an hourly fee, a set fee or a percentage of
the practice’s
profits per year.
Your decision should take into account the value the physician
brings to the group in the management role. That is, how is
this position affecting your group’s profitability?
Do you get more revenue from your managed care contracts?
Does the position involve managing operations only? Your answers
to questions like these can help you determine the value of
the position and, subsequently, its fair compensation.
Some groups feel that a physician administrator basically
saves them from having to hire another administrator. In that
case, compensation is based on an administrator’s going
salary — in other words, the group pays the physician
the amount the group is saving by not having to hire another
staff person.
There’s really no industry standard for this, so your
small group should principally look at its overall budget
and work out with its physicians fair compensation for their
contributions. It’s a matter of negotiation.
|