2002 Physician Inpatient/Outpatient Revenue Survey

Merritt, Hawkins & Associates is a national physician search and consulting firm representing over 2,000 physician search engagements annually.

As part of our effort to monitor trends in health care, we conduct an ongoing series of surveys covering topics such as physician compensation, physician practice patterns and physician demographics. This report summarizes Merritt, Hawkins & Associates first survey of the inpatient and outpatient revenue generated by physicians for their affiliated hospitals.

The survey is intended to provide benchmark data hospitals can use to develop a quantitative analysis of their physician recruiting programs. A quantitative analysis as defined by the U.S. Internal Revenue Service (IRS) establishes the financial benefits that newly recruited physicians will bring to a hospital. These benefits may support the hospitals mission of providing quality care to the community by creating revenue streams necessary to its continued or its enhanced operation. A quantitative analysis therefore may serve as part of a hospitals physician recruiting compliance plan by demonstrating the financial benefits to the hospital of physician recruitment. It should be noted, however, that a compliance plan also should include a qualitative analysis demonstrating how newly recruited physicians will enhance quality of care in the community.

Survey data also may be used in setting physician compensation levels or recruiting incentives through a costs/benefits analysis comparing the aggregate expense of recruiting to the average revenue generated by physicians in various specialties.

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