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TOO MANY MEDICAL DIRECTORS?
DECEMBER 2015
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Our unique opportunity
• MD Ranger collects data holistically from hospitals and healthcare organizations; as a result, we see spending habits and trends• Number of positions per facility available• Aggregated totals calculated and benchmarked
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The challenge:Healthcare organizations who assign a blanket policy for physician administrative roles without thinking about the big picture could:
• Miss opportunities for savings• Have a compliance problem
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How it happens
• Negotiating individual contracts without considering the organization’s broader goals
• Challenging physician relationships• Not having a centralized contracting process• No timesheet mandates; poor coordination
with AP
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Too much of a good thing?
It happened to these guys
-
20
40
60
80
100
120
140
160
All Hosps X 2 1 Trauma + 1 Non-Trauma1 Trauma + 1 Non-Trauma(Urban, over 150 beds,
over 125 ADC)
Blend of All 3 with 20%Efficiency
25% 50% 75% 90% JMH ComparisonEast Health System
Comparable MD Ranger Subscriber (77 medical
directors)
Hemlock Health (120 medical directors)
*Pseudonym
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DIAGNOSIS:CHECK BENCHMARKS FOR TOTAL
SPENDING
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Number of paid administrative positions—all MD Ranger hospitals
25th percentile 50th percentile 75th percentile 90th percentile0
5
10
15
20
25
30
35
40
45
Num
ber o
f Paid
Pos
ition
s
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DIAGNOSIS:REVIEW YOUR CONTRACTS IN AGGREGATE
BY SERVICE LINE AND BY PHYSICIAN
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Prioritize by service (and know thyself)
Cardiology - Heart Center
Pathology/Clinical Laboratory
Pediatric Surgery Trauma Surgery Vasuclar Surgery$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Top Five Compensated ServicesMedian Annual Hours of Service
Service
Annu
al Ra
te
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DIAGNOSIS:AUDIT ALL PHYSICIAN CONTRACTS FOR
FMV AND COMMERCIAL REASONABLENESS
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When spending this much cash…
Cardiology - Heart Center
Pathology/Clinical Laboratory
Pediatric Surgery Trauma Surgery Vasuclar Surgery$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Top Five Compensated ServicesMedian Annual Payments
Service
Annu
al Ra
te
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DIAGNOSIS:CHECK AP RECORDS AND MAKE SURE THEY AGREE WITH PHYSICIAN TIME
CARDS
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Compliance risks lurking in hours…
Ambulatory Services Trauma Surgery Pathology/Clinical Laboratory
Vascular Surgery Pediatric Surgery0
100
200
300
400
500
600
Top Five Compensated ServicesMedian Annual Hours of Service
Service
Annu
al Ho
urs
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In summary:
• Check benchmarks for total spending• Review your contracts in aggregate by service
line and by physician• Audit all physician contracts for FMV and
commercial reasonableness• Check AP records and make sure they agree
with physician time cards
