Manage Your Practice

Physician “Alignment” – When $X Does Not Equal $X

January 23, 2012

In my podcast on How the Downward Spiral of Fair Market Valuation Will Destroy Your Future, I discuss how valuation consultants’ refusal to opine at higher than the 75th percentile is taking the fairness out of fair market valuation and robbing you of your income.

There’s another angle to this:  And that’s the fact that earning $X, net, self-employed and earning $X, net, as an employee are two very different things.  $X as an employee comes subject to being fired subject, subject to being told what to do, and subject to a plethora of rules — that’s a much poorer compensation package

Hospital administrators misunderstand this because they’re clueless as to the issue.  They’ve never been or will be entrepreneurs – people who create value.  They are bureaucrats — people who destroy value.

Therefore when they tell you that they will match your compensation or that the national group that’s picking up your exclusive contract or service will pay you the same dollars — they’re not doing you any favors.



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