Doctor Debtor’s [Brazen Few Increasing?]

Join Our Mailing List

Education and Other Debt-Load Risks

[By Staff Writers]biz-book

Managed care is a prospective payment method where medical care is delivered regardless of the quantity or frequency of service, for a fixed payment, in the aggregate. 

Desperate Students Doctor’s and Healthcare Professionals

Among the many reasons why doctors are financially unhappy, some might even say desperate today, is because a staggering medical student loan debt burden of $100,000-$250,000 is not unusual for new practitioners. For example, the federal Health Education Assistance Loan (HEAL) program reported that for the Year 2002-03, student numbers and default totals include*: 

  • Allopathic Medicine 194, $20,495,446
  • Chiropractic 926, $74,781,238
  • Clinical Psychology 40, $3,051,546
  • Dentistry 342, $40,158,139
  • Health Administration 4, $285,543
  • Optometry 29, $2,481,808
  • Osteopathy 39, $4,988,389
  • Pharmacy 33, $1,320,457
  • Podiatry 127, $17,797,564
  • Public Health 7, $569,733
  • Veterinary Medicine 1, $32,602

Total for all disciplines: 1742, $165,962,465

And, the totals are even higher in 2008

Source: www.defaulteddocs@hrsa.gov

Other Debts

Significant miscellaneous debts incurred by doctors usually include “excessive-wants” more than “actual-needs”. Such extravagances include automobiles, homes, vacations, clothes and depreciating assets or “toys.”

Often, doctors even reckon they are immune from typical small claims debts, or court collection actions, by virtual of their education and career. For example, alleged non-payment of the following de-minimus private debts have allegedly been freely admitted by these doctors for illustrative purposes, despite prior threats of credit agency reporting and other perfectly legal fair debt collection tactics:

Public Non-Payment Rebuke:

  • Mark Hill, MD; Pulaski, New York
  • Tom Pfennigwerth, DPM; Seneca, PA

Assessment

Of course, one wonders, perhaps ironically, about the billing and AR collection practices of such miscreants in their own medical offices; ethics, legality, morality?

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Product DetailsProduct Details

Product DetailsProduct Details

Emergency Room and On-Call Risks

Join Our Mailing List

Next-Gen Doctors Opting-Out

Dr. David E. Marcinko MBA - MSLBy Dr. David Edward Marcinko; MBA, CMP™

[Publisher-in-Chief]

Of course, it’s getting more expensive these days to take hospital call as physicians are electing not to take this responsibility because of decreased reimbursement rates. Others opt-out because of a desire to spend more time with family, and/or scheduling conflicts. And, let’s not forget the liability concerns.

Historical Review

But, back in the old days, I recall eagerly signing up for call to make a few extra bucks [it was a very competitive proposition back then], as I started my fledgling practice.  About a decade later, I didn’t make much on-call money any more, but continued my rotation and chalked it all up to societal “pro-bona care”. And, the increased service visibility still garnered me a few lucrative patient referrals. Then, it became a financial and out of office-time loss, and ultimately a great liability headache. Fortunately, I could afford not to do it any more; and quit. Let the younger guys and gals “pay their dues”, I reasoned.

Legal Issues

Now today, there is a growing revolt of specialists against hospital on-call duties that threatens to violate Federal law and lose status as trauma centers. Specialties most likely to refuse include plastic surgery, ENT, psychiatry, neuro-surgery, ophthalmology and orthopedics. And, refusing to respond to assigned call is a violation of Federal law and carries fines as much as $50,000 per case.

Opting –Out

In contrast, refusing to sign up for call does not violate the law, and more physicians are taking this option. The problem opting-out problem is especially acute in California where hospitals are combating the issues with compensation, reporting the miscreant docs to the authorities, or threatening to remove them from staff completely.

Assessment

In turn, doctors are fighting back with lawsuits.

Other Supporting Opinions

Essayist Jeff Goldsmith,President of Health Futures Inc, and Associate Professor of Public Health Sciences at the University of Virginia*recentlyopined that:

“We can expect intensified conflict with private physicians over the hospital’s 24-hour mission and service obligation, specifically providing physician coverage after hours and on weekends. Younger physicians have shown decreased willingness to trade their personal time to cover hospital call in exchange for hospital admitting privileges as their elders did. Those admitting privileges are either less essential or completely unnecessary in an increasingly ambulatory practice environment. The present solution is for hospitals to pay stipends to independent practitioners for call coverage or to contract with single specialty groups large enough to rotate call internally.” 

NOTE: * Goldsmith, Jeff: The Long Baby Boom, by Johns Hopkins University Press, May 2008.

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Link: http://feeds.feedburner.com/HealthcareFinancialsthePostForcxos

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

DICTIONARIES: http://www.springerpub.com/Search/marcinko
PHYSICIANS: www.MedicalBusinessAdvisors.com
PRACTICES: www.BusinessofMedicalPractice.com
HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
CLINICS: http://www.crcpress.com/product/isbn/9781439879900
BLOG: www.MedicalExecutivePost.com
FINANCE: Financial Planning for Physicians and Advisors
INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors

Product DetailsProduct DetailsProduct Details