Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

How much Medicare pays doctors requires context

Cedric Dark, MD, MPH
Policy
April 11, 2014
Share
Tweet
Share

medicare-112k

The Centers for Medicare and Medicaid Services released a massive amount of information regarding how much money it paid out to individual doctors. For the policy nerds out there, here is the original data.  For everyone else, here is a simple way to look up how much your own doctor made. I decided to search for myself in the database to discover how much Medicare paid me.

Compared to the highest paid doctor — an ophthalmologist practicing in West Palm Beach — I made almost nothing. Now most ophthalmologists do pretty well, but this guy “made” over $20 million in 2012. Just from Medicare alone!

Well, when digging into the numbers, that doctor’s compensation was only $2.5 million. Office overhead cost $6.1 million and another $11.8 million went to “drugs and other” items.

The point that this doctor and others who have been singled-out by the news media have made is that either the highest compensated physicians are simply the one person billing on behalf of a large group of physicians or a huge chunk of the money paid to them is just being funneled from Medicare to pharmaceutical companies while only virtually entering the physicians’ hands.

In 2012, I never once saw a check from Medicare. I never held it, or stashed it in a bank vault, or did one of those Scrooge McDuck swimming through the money pit moments I remember from childhood. Instead, the $112,134 that Medicare paid me in 2012 went into a “lockbox” held by a large corporation that employs emergency physicians and contracts with hospitals to staff emergency departments. In fact, all the money for services for which I charged patients — whether the patient paid via Medicare, Medicaid, Kaiser, Blue Cross, or even out of their own pockets — ended up in that lockbox.

Some of that money made it to me. Of course, not all of it did. Some went to pay for the salaries of the people running that large corporation. And since that company is a publicly traded firm some of that money probably went to shareholders too. But, by no means did all of that $112,134 make it to me.

But the release of the data by CMS and the headlines from some newspapers will irresponsibly misled the public into thinking that thousands of millionaire doctors are driving around America in Masseratis and Bentleys at the expense of the American taxpayer.

Let us — for a moment — look at how much I got paid by Medicare. Specifcally, let us look at the care of the 60 sickest critical care patients that rolled into my ER in 2012. To care for those patients, which according to Medicare rules requires a minimum time commitment of 30 minutes, I got paid a whopping $181 per patient. Today I took care of a similar patient who, but for the grace of God and the skilled hands of myself and several emergency nurses, would have died. That’s only worth $181?

Maybe CMS timed this data dump to distract from the fact that the Senate approved a bill to cut further what Medicare already pays physicians. I certainly believe that Medicare overpays for some services (mostly procedures like those performed by those super-rich ophthalmologists) relative to others (intellectual services like primary care, psychiatry, etc.).

But I can tell you one thing.

Saving your life is worth more than $181.

Cedric Dark is founder and executive editor, Policy Prescriptions.

Prev

Doctors struggle to treat childhood obesity

April 11, 2014 Kevin 2
…
Next

Doctors didn't sign up to fill out forms

April 11, 2014 Kevin 8
…

Tagged as: Emergency Medicine, Medicare

Post navigation

< Previous Post
Doctors struggle to treat childhood obesity
Next Post >
Doctors didn't sign up to fill out forms

ADVERTISEMENT

More by Cedric Dark, MD, MPH

  • What a doctor felt when his neighbor was shot

    Cedric Dark, MD, MPH
  • A theological answer to our health care crisis

    Cedric Dark, MD, MPH
  • A path to universal health coverage in America

    Cedric Dark, MD, MPH

More in Policy

  • Who gets to be well in America: Immigrant health is on the line

    Joshua Vasquez, MD
  • Online eye exams spark legal battle over health care access

    Joshua Windham, JD and Daryl James
  • The One Big Beautiful Bill and the fragile heart of rural health care

    Holland Haynie, MD
  • Why health care leaders fail at execution—and how to fix it

    Dave Cummings, RN
  • Healing the doctor-patient relationship by attacking administrative inefficiencies

    Allen Fredrickson
  • The hidden health risks in the One Big Beautiful Bill Act

    Trevor Lyford, MPH
  • Most Popular

  • Past Week

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • America’s ER crisis: Why the system is collapsing from within

      Kristen Cline, BSN, RN | Conditions
    • Why timing, not surgery, determines patient survival

      Michael Karch, MD | Conditions
    • How early meetings and after-hours events penalize physician-mothers

      Samira Jeimy, MD, PhD and Menaka Pai, MD | Physician
    • FDA delays could end vital treatment for rare disease patients

      GJ van Londen, MD | Meds
  • Past 6 Months

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • How President Biden’s cognitive health shapes political and legal trust

      Muhamad Aly Rifai, MD | Conditions
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
  • Recent Posts

    • Addressing menstrual health inequities in adolescents

      Callia Georgoulis | Conditions
    • How to advance workforce development through research mentorship and evidence-based management

      Olumuyiwa Bamgbade, MD | Physician
    • The truth about perfection and identity in health care

      Ryan Nadelson, MD | Physician
    • Civil discourse as a leadership competency: the case for curiosity in medicine

      All Levels Leadership | Physician
    • Healing beyond the surface: Why proper chronic wound care matters

      Alvin May, MD | Conditions
    • Why specialist pain clinics and addiction treatment services require strong primary care

      Olumuyiwa Bamgbade, MD | Conditions

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 2 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • America’s ER crisis: Why the system is collapsing from within

      Kristen Cline, BSN, RN | Conditions
    • Why timing, not surgery, determines patient survival

      Michael Karch, MD | Conditions
    • How early meetings and after-hours events penalize physician-mothers

      Samira Jeimy, MD, PhD and Menaka Pai, MD | Physician
    • FDA delays could end vital treatment for rare disease patients

      GJ van Londen, MD | Meds
  • Past 6 Months

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • How President Biden’s cognitive health shapes political and legal trust

      Muhamad Aly Rifai, MD | Conditions
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
  • Recent Posts

    • Addressing menstrual health inequities in adolescents

      Callia Georgoulis | Conditions
    • How to advance workforce development through research mentorship and evidence-based management

      Olumuyiwa Bamgbade, MD | Physician
    • The truth about perfection and identity in health care

      Ryan Nadelson, MD | Physician
    • Civil discourse as a leadership competency: the case for curiosity in medicine

      All Levels Leadership | Physician
    • Healing beyond the surface: Why proper chronic wound care matters

      Alvin May, MD | Conditions
    • Why specialist pain clinics and addiction treatment services require strong primary care

      Olumuyiwa Bamgbade, MD | Conditions

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

How much Medicare pays doctors requires context
2 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...