They’ve thrown down the gauntlet! Mark Dietrich and Tim Smith will debate anyone who disagrees with their views on the fair market value of physician compensation. And BVR will provide a public forum that will include anyone who takes up the challenge. “Anywhere, anytime!” they proclaimed during a recent webinar.
New paradigm: Dietrich and Smith refute conventional wisdom regarding the compensation hospitals pay to employ physicians and offer an alternative approach to determine fair market value. Two issues are key to this matter: the use of compensation survey data and physician relocation. These issues and their new approach are fully explained in their recently published book, the BVR/AHLA Guide to Valuing Physician Compensation and Healthcare Service Arrangements, 2nd edition.
One of the problems with surveys is that they are not based on random samples and the same organizations are reporting to at least two different surveys, they say. Also, survey data are not always consistent with information about collections in the very same surveys. On the “relocation myth,” hospitals feel that, if they don’t pay their physicians at least the median compensation for their specialty, the physicians will relocate to earn more. But Dietrich has done extensive research on physician mobility that disproves this notion. Instead of paying physicians the median compensation, hospitals could set fair market value compensation based on the resource-based relative value scale (RBRVS), they say. Business Valuation Update subscribers can read a recap of the webinar in the March issue. You can also listen to an archive version of their webinar if you click here.
Go time? Are you willing to take up the challenge? Contact us at info@bvresources.com. We’ll set it up!