Physicians are the most highly trained members of the medical industry’s force, yet have median compensation. The largest salaries go to the Medicrats who oversee the business of medicine. Insurance CEOs average $584,000 compared to surgeons ($306,000) or a general doctor ($185,000). The bulk of nonsalary compensation for administrators is from stocks and options. It is incredible that insurance executives are paid so much more than highly trained surgeons. Barnabas Health lists more than 20 vice presidents who earn over $350,000 per year. Hospitals claim that the large pay is necessary to attract those who have the expertise needed. Administrative costs are 20 to 30% of the U.S. health care bill, far higher than any other country. American insurers spent more than twice as much as any other country on administrative costs.
Doctors are growing very frustrated with all the business people interfering with the practice of medicine and are burdened by the excessive administrative costs, which are affecting the cost for medical care. Doctors are pushing back against the system: This past spring, doctors in northern Wisconsin created an ad in their local medical journal demanding widespread reforms to lower prices. This movement was started when a surgeon, Dr. Hans Rechsteiner, discovered that an appendectomy ($1700) patient was billed over $12,000. Physicians have a stressful job that they find fulfilling and want to do well for their patients – without the financial burden and regulatory headaches.
Rosenthal, Elisabeth. “Medicine’s Top Earners Are Not the M.D.s.” Sunday Review. The New York Times, 17 May 2014. Web. 23 Oct 2014.