PathologyNow: The Devaluation of the Pathologist
PathologyNOW: For decades the medical community has been reliant on the expertise of the pathologist. Almost 80% of all medical procedures require an element of pathology. However, when it comes to how users value the service, the populace votes with its purse. When MGMA looks at the national averages on physician wages it’s clear to see that comparable specialties are not paid the same, not valued the same.
It only gets worse…
If the 20 million-dollar vote against you isn’t enough, the same observations are glaringly obvious to almost all of the large locum tenens staffing agencies. They understand pricing disparity and take full advantage of it! Most agencies make more on an hourly basis than they pay the pathologist. The annual disparity in pay is typically over $120,000 a year. This is revenue that never makes it into the hands of the pathologist doing the work.
By the numbers
- 55%: The average percentage of staffing agencies currently make more than the pathologist hired to do the work.
- $1518.50: The average per-day gross profit agencies receive (i.e., locums receives $850 per day from agency, agency bills client $2235 for the daily fee + $133.50 for the admin fee).
- $41.04: The average amount agencies earn “per case” if we take the $1518.50 overpayment and divide it by 37 (the average number of cases a locum pathologist signs out).
- $1107.50: The average amount clients over-pay, per day, for their pathologist sent by agencies ($893.50 in work fees + $214 in travel padding).
- $567.25: The average daily provider under-payment, or loss, withheld by staffing agencies (and enjoyed as profit) that does not make it into the hands of the pathologist.
- 65: The average number of days a part-time locums pathologist works annually.
- $36,871.25: The average amount a part-time locums pathologist gifts to their agency each year for a “job well done.”
How do we reverse the disparity?
We start by paying pathologists as though they are radiologists.
We start by taking the excessive profits stolen by locum tenens agencies and give it back to pathologists and the clients who hire them!
Level the playing field and hit the reset button. Let us help you by
- Renegotiate your locums agreements: We have expertise for both clients and providers and currently average an increase in provider pay of $385 per-day and an average decrease in client bill rates of $563.
- Openly discuss rates: Understand that clients and providers are not restricted from discussing bill and pay rates. Don’t know what the agency is paying your locums? Ask the locums. Don’t know what the agency is billing your clients? Ask the client.
- N0n-competes are non-threatening: In the past 4 years, laws and rules have changed drastically for those who work as Independent Contractors, especially for locum tenens physicians.
- Understand malpractice insurance: In staffing, it is portrayed as a comprehensive and confusing formulary but in reality, it’s only sold that way to veil profit margin and just how cheap claims-made insurance really is.
- Hire the firm that knows pathology as a specialty. We’re not a staffing agency, but we do staffing… transparently! PathologyNOW!
