Physicians and surgeons generate millions of dollars in revenue for affiliated hospitals each year, with orthopedic surgeons being near the top revenue generators, according to a new survey from Merritt Hawkins and AMN Healthcare.
The average physician generates around $2.3 million per year on behalf of their hospitals in both net inpatient and outpatient revenue. The revenue calculated includes hospital admissions, tests, treatments, prescriptions and procedures performed or ordered.
While cardiovascular surgeons topped the list of highest revenue generators, orthopedic surgeons came in at No. 4, generating $3.3 million annually on average for their hospitals. In comparison, neurosurgeons generate around $3.4 million and cardiovascular surgeons generate $3.7 million per year.
"The value of physician care is not only related to the quality of patient outcomes," said Merritt Hawkins Executive Vice President Travis Singleton. "Physicians continue to drive the financial health and viability of hospitals, even in a healthcare system that is evolving towards value-based payments."
In 2019, orthopedic surgeons generated 19.6 percent more in revenue for affiliated hospitals than in 2016.
The report also conducted the cost/benefit analysis of physicians that provide the best return on investment based on their salaries and revenue generated. Orthopedic surgeons report an average of $533,000 starting salary, generating six times that in hospital revenue. In comparison, family physicians generate nine times their average starting salary in hospital revenue.