It is time. No longer can you “Just see your patients” without taking on some of the financial decision making that is vital to the health and sustainability of your practice. It doesn’t matter if you are in private practice or employed by a health system, every health care provider needs some basic financial knowledge. Consider the following scenarios:
- You have been in a hospital employment job for 1 year. The hospital representative comes to all the staff and states they have lost $2 million dollars over the last 9 months and are instituting a 6% reduction in expenses. Provider layoffs are to be considered to satisfy this goal. Your job is in jeopardy because you are the new guy. Would an understanding of the hospitals finances have influenced your decision a year ago?
- Every physician applicant for a position in my department asked me about the financial health of the hospital. I say, it seems to be fine, after all I want the applicant to accept the position. I don’t really know, but the answer seems to be accepted.
- When it comes time for capital budgeting decision making, it seems like the most politically connected physicians control the purchasing of new equipment. Why can’t I make an augment for what I need to take care of my patients that people will listen too.
Empower yourself with knowledge