Career and Life Planning Guidebook for Medical Residents

Understanding The Other Side of Medicine The Healthcare Market Total healthcare expenditures reached $3.5 trillion in the United States in 2017 . This figure is projected to reach $6.0 trillion by 2027. Of the current spending, about a quarter, or $920 billion goes as payments to physicians andclinical services. Healthcare spending is projected to grow by 5.7% annually over the next 10 years. While this far exceeds the rate of growth of the economy is a whole, this is not necessarily good news for physicians. The biggest drivers of spending growth are economy-wide inflation, increases in use and intensity of healthcare services, population growth and demographic changes. While growth in the healthcare system may seem like a good thing, it comes with some downsides. First, as costs rise, there is more political pressure to enact change. Federal, state, and localgovernment is responsible for 45% of healthcare spending, primarily through the Medicare and Medicaid programs. Growing costs will lead to demands for cost control, which will place a burden on healthcare providers. Health insurers continue to grow through mergers, meaning that in any local marketplace, there are often only a few insurers covering the majority of patients. This increases the negotiating power of those insurers, and results in lower reimbursement rates for providers. Changing technology is also impacting the business of medicine. Electronic medical records were supposed to create improved and more efficient patient care, along with better medical documentation. So far, the results have been mixed at best, with many physicians finding that electronic records have dramatically increased administrative time, and reduced patient care hours. Improvements will be made, but it is important that physicians have a role in the design of the systems. A Final Word Most students enter medical school to help make the world a better place. They feel that a lifetime of providing care is a valuable calling while also being in a financially rewarding career. However, neither of these should be taken for granted. Many new physicians experience high levels of stress due to patient care challenges along with financial pressures that inhibit patient care. As you move forward with your medical career, I encourage you to take charge of your practice or clinical setting. Learn to be both a physician and a manager in order to lead healthcare change. Our entire healthcare system is depending on you. 129 WWW.PHYSICIANCAREERPLANNING.COM