Sunday, November 14, 2010

Money money!


I'm curious how the physician is paid and get money. Because some said if you want to be rich, doctor is not in the list.

But do you think Mercedes, Gucci and Rolex are cheap?

Basically, there are two types of provider payment mechanism:

1. Prospective payment system

Capitation - under capitation system, physicians are paid a set amount for each enrolled person assigned to that physician or group of physicians, whether or not that person seeks care, per period of time. For example, there is a difference between physician that work in the big city than the physician that work in the rural area with small amount of people live there. The payment of the physician is based of the population. If in the big city, the population there is about 10,000 people, so for every each people that seek treatment,  you will be paid for $20 each, then you will get around $200,000 payment in a month! Compared to physician that work in the small population, you will get less. This payment is regardless how many patient come to see you, even if only 50 people, you will be paid with the same amount. So lets pray for the good health condition patient!

Salary - salary means the basic payment that you will get in a month. The physician will be paid with the fixed amount, regardless how many hours you work, how many patients you treated and how many times you make excuse as 'Lunch hour'. In this salary payment, some physician can be paid extra with the certain condition,  if you do overtime/on call or you get extraordinary talent, which means you do extra jobs. So lets pray for more tea time!

2. Retrospective payment system

Fee-for-service/ out of pocket - In this system payment, the physician will get money depends on the amount of patients. The more patient you have, the more money you will get. In the health care industries, fee-for-service occurs when doctors and other health care providers receive a fee for each service such as an office visit, test, procedure, or other health care service. If you are lucky enough, sometimes there are patients that give you bonus for your extra work, so lets pray for the rich patient!

But every each of payment have their own pros and cons. So, lets check it out.

1. Lecture note on Payment for Physicians. Prof. Dr. Laksono Trisnantoro, MSc, PhD.

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