As hospitals cut costs in every area, one of the last remaining protected buckets is physician contracts. What if I told you that you can cut 1% off your total spend this next year. Would you believe me? There are three solid ways to cut your spend, and actually, with data, all can be relatively painless. You need a ginzo knife to get in there and “trim the fat.”
The first thing is to go find your total physician investment. You are going to need the data on what the potential spend is and what you are running annually on actual spend for each contract. This sounds easy, go to payroll for employed side for the actual payments. For the independent physicians it takes a few more steps to locate all the physicians being paid. Pull all groups, PC and any payment with an MD or DO behind it. This becomes your target list. The next step is to go pull all the physician contracts to evaluate the potential spend and get to work.
Here are three ways to find money. Any one alone will result in a 1% savings (and maybe more in some cases) in the course of one year:
In most hospital systems around the country, physician expenditures go up each year. The measurement of this investment is lacking at most organizations because the systems are siloed and manual in nature. Get your system on track by making physician contract review an annual event.