Health & Medical First Aid & Hospitals & Surgery

Business of EM: Benefits of Physician Ownership

Business of EM: Benefits of Physician Ownership

Qualified Assistance


Many emergency physicians lack the skills, confidence, or inclination to establish and maintain a physician-owned organization. That’s why some groups choose to outsource many of the associated duties. Beyond helping with the legal creation of the new entity and the tasks associated with that process — establishing bylaws, setting up compensation mechanisms and benefits, shopping insurance and the like — a qualified consultant will provide assistance in negotiating managed care and hospital contracts. In addition, outsourcing the coding and billing process to an experienced billing provider will help ensure optimal reimbursement and consistent cash flow over the long term.

Note how owning your practice and hiring outside help differs from working for a contract management group (CMG), such as Team Health or EmCare, among others. When emergency physicians own the practice they see the books and are aware of revenue and expenses, they decide who to hire as a management consultant and how much to pay that consultant, and they have the power to fire that consultant. They make the decisions about where to purchase malpractice insurance and other benefits. Most importantly, the physician-owners reap the benefits of their practice rather than enriching others before themselves, and are individually invested in the success of the practice — and thus in the prosperity of their hospital.

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