I’ve learned a lot from this class called Short-Term Financial Management, which is basically an accounting class. The most important point is that profit is completely different than cash flow in medicine.
Your medical practice could run a profit every day and still go bankrupt simply from day-to-day operations because of the timing problem with cash flow in medicine. I am not talking about a major lawsuit from a patient or an investigation into your practice by Medicare. This refers only to regular operations.
Let me introduce some accounting into your life. I won’t go too in depth because no one really likes accounting… (But it’s one of the most useful things you can study in school.) If you don’t understand the Financial Statements Overview section, you are probably in the majority, and the section below it will go through the main points. Continue reading “Focus on Cash Flow, Not Profit in Medicine”
Have you noticed 24 hour independent freestanding ER’s popping up on seemingly every major intersection, especially in well-to-do areas, within the past few years? I have. I also worked in a level 1 trauma emergency department as a scribe this summer, so I witnessed movement of some older emergency medicine doctors to these freestanding ER’s, so I have a particular interest in this.
According to AP, freestanding ER’s have had rapid growth since 2009, with much of the growth coming from Texas, where most of the free-standings are. In 2009, Texas passed a law that allowed private, for-profit facilities to deliver emergency services spurring the growth.
The focus is going to be on independent free-standings (owned by a physician or a company) rather than non-profit hospital-owned. Independent free-standings operate uniquely while hospital-owned free-standings are more of an extension of the hospital.
Continue reading “Where Did All of These Free-standing ER’s Come from? (Business Model and Controversy)”