Career and Life Planning Guidebook for Medical Residents

SECTION I: T MINUS THREE YEARS Chapter Tool Box The CHAPTER TOOL BOX consists of RECOMMENDED TOOLS featured throughout the chapter, along with additional resources and recommended links. These tools will help you gain valuable insight about Business in Medicine. UNDERSTANDING BUSINESS ARRANGEMENTS http://md.careers/ST-11 Recommended Reading: Ciulla, T, Tatikonda, M., ElMaraghi, Y., Hussain, R., Hill, A., Clary, J., Hattab, E. (Lean Six-Sigma Techniques to Improve Ophthalmology Clinic Efficiency), Retina , vol. 39, issue 9, September, 2018. Harbin, Tom. The Business Side of Medicine: What Medical Schools Don’t Teach You, Mill City Press, 2013. Kane, Carol K. Updated Data from Physician Practice Arrangements: Physician Ownership Drops Below 50 Percent. American Medical Association; 2017, Policy Research Perspective. Merlino, J., Raman, A. (Health Care’s Service Fanatics). Harvard Business Review, May 2013. Norris, David J. The Financially Intelligent Physician: What They Didn’t Teach You in Medical School. Author Academy Elite, 2016. Sisko, A., Keehan, S., Poisal, J., Cuckler, G., Smith, S., Madison, A., Rennie, K., Hardesty, J. National Health Expenditure Projections, 2018-27: (Economic and Demographic Trends Drive Spending and Enrollment Growth). Health Affairs 38, No. 3; 2019: 491-501. Terms & Definitions: Accounts Payable: Payments that the organization owes to outside entities for goods/services it has already received. Accounts Receivable: Money owed to the organization for services already rendered. Assets: The resources that a company has that can generate a future economic benefit Balance Sheet: Financial statement listing an organization’s assets, liabilities, and equity at a given point in time. Fixed costs: (Overhead): Costs that do not vary based on sales volume. Gross Margin: Revenue from sales minus the cost of goods sold and/or cost of sales Income Statement: Financial statement showing an organization’s revenues, expenses, and profits for a given time period. Liabilities: The future financial obligations that a company has from business operations Net Profit: Revenue minus all expenses in a given time period, usually calculated on a monthly, quarterly, and annual basis. Relative Value Units (RVUs): A measure of value for physician services provided. Revenue: Income flowing into an organization during a time period. Variable costs: Costs that vary with sales. CAREER AND LIFE PLANNING GUIDEBOOK FOR MEDICAL RESIDENTS 130