Simply comparing physician salaries with the revenue those doctors bill for may look as if they’re operating at a deficit., but that’s not the full story. (Photo: Shutterstock)

It’s popularly thought that by hiring more doctors hospitals are firing deficits right at their bottom lines, but that does not appear to be the case. Modern Healthcare reports that in its annual Hospital Systems Survey, 76 percent of respondents who brought in more doctors in 2017 said the move didn’t materially change their financial performance. Another 22 percent said the move actually bettered their bottom line, and only 3 percent said their finances deteriorated.

Among the 47 health systems that participated in the survey, things are a lot more positive among those bringing in more physicians than expected by industry experts.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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