CEO SUMMARY: Many anatomic pathology groups are watching their revenue decline and margins shrink on the same or greater case volume. These trends make it imperative to have a deeper understanding of the operational and financial variables that contribute to stability in the group’s finances and pathologist compensation. One expert on the financial complexity of anatomic
Tag: pathologist compensation
SINCE THE END OF WORLD WAR II, the dominant practice model for the pathology profession has been the private group practice. Outside of academia and a few other settings, the vast majority of pathologists practiced laboratory medicine as physician-partners in a medical group.
During this same period, the pathology profession’s major defender was the College of
CEO SUMMARY: Information on the year-to-year change in average total cash compensation for physicians shows that income is not keeping pace with inflation. That is not news to the physician community. However, pathologists continue to earn compensation that is above the midpoint average for 16 specialties. Compensation is rising swiftly for those pathologists with specific
“Growing interest in ways to link a pathologist’s productivity to his/her compensation makes this a widely-discussed topic within many pathology group practices.” –Dennis Padget
CEO SUMMARY: Part Three continues THE DARK REPORT’S series on measuring pathologist productivity. In this installment, pathology practice consultant Dennis Padget identifies different approaches to appropriately link pathologist productivity with compensation. After
“Conflict in groups stems from trying to use one measurement system to meet all practice goals. This is the pitfall to avoid.” —Dennis Padget
CEO SUMMARY: Productivity measurement systems are widely used outside the healthcare industry to better manage operations and to incentivize staff. Many pathology groups have a gnawing feeling that they should be looking
WILL BUSINESS BE BETTER for AmeriPath, Inc. as a private company than it was as a publicly-traded firm? Its 2003 financial report indicates some interesting challenges, many common to all laboratories.
First, a look at basic numbers. AmeriPath’s net revenues grew from $478.8 million in 2002 to $485.0 million in 2003. That’s a growth rate of
CEO SUMMARY: During the next two years, two of every three pathology group practices will see a change in pathologists, either through new hires or by resignation and retirement. These events fundamentally change the financial situation of the group, but since most groups are organized under the business models of 1980s medicine, they struggle to
CEO SUMMARY: It’s another example of consolidation in the anatomic pathology marketplace. AmeriPath, Inc.’s acquisition of Inform DX, Inc. positions the company to do as much as $350 million in revenues next year. By acquiring Inform DX, AmeriPath also gains entry into six more states. The financial performance of both companies is another sign that
CEO SUMMARY: Historically, there was virtually no market for buying and selling pathology practices. That is rapidly changing as the first pathology practice management (PPM) companies enter the marketplace. Their business plan requires them to acquire pathology practices if they are to grow and prosper. In the first installment of this special two-part series, we