The networks set the negotiated costs which the providers accept. However, the doctor charges $370, accepts the negotiated cost of $22 and the doctor writes off the $348 as a business loss.
So the doctor sees 20 patients per day, charges $7,400.00, accepts $880.00 and writes off $6,960.00 as a loss.
Multiplied by 52 weeks, 5 days per week (260 days) = $228,800 paid, $1,809,600 written off as a loss.
So I've been told, and if it's true, consider what the doctor's practice bills out daily. Then consider what the hospitals bill out daily. Then consider how much is written off as a business loss each year and how this might affect their tax rate and what they pay(?) in taxes.
Again, I don't know this as fact but it's what I've been told and it seems believable (I wanted to say logical?) to me.
I also have a client who's a radiologist, who told me monthly he earns $30k as a base salary, and averages $70k per month in bonuses from the hospital. I would be interested to know how those bonuses are figured!
I wonder if I'm too old to start med school?
PS - as a disclaimer, I have the utmost respect for all health care providers, what they do and the care they provide. But IMO affordable care it is not.
