Career and Life Planning Guidebook for Medical Residents

SECTION I: T MINUS THREE YEARS R E A D : Introduction: In 1996, I began managing a small orthopedic practice with three physician-owners. Each had their own style as the owner of a business. The senior physician asked to never see a financial statement or any information about the business. He asked only to get his paycheck each pay period, and a quarterly bonus when available. The second physician was skeptical of financial statements but wanted to ensure that his financial interests were protected. The newest physician strived to learn about the business, the decisions that needed to be made, and the ways that the changing healthcare business would affect the practice of medicine. This is a microcosm of how the relationship between business and medicine has evolved over the last generation. Baby Boomer physicians viewed business management as unavoidable, but a practice that was below the dignity of the physician. Generation X physicians view business management as a hobby – something to look at when they are not seeing patients. The next generation of physicians is embracing business management as core to the delivery of medicine. It will impact every aspect of the delivery of care, including the payment for services. I believe that every physician needs to understand the business of medicine. Knowledge is power, and the more you understand of the ever-evolving field of the business of healthcare, themore empowered you will be practicing in this domain. This chapter serves as an introduction to what I hope will be a lifetime of learning about the business of healthcare. Why you need to understand business The days in which physicians can simply allow a practice manager, hospital administrator, or other businessperson to make all non-clinical decisions within a healthcare organization are largelyover. The CAREER AND LIFE PLANNING GUIDEBOOK FOR MEDICAL RESIDENTS 116