Why an MBA?

As physicians move into medical management, leaving clinical practice behind to play a major role in managing physician performance and clinical processes, they are having to deal in the business world. Physician executives are donning the pinstripe suit instead of the white coat, and adding a business acumen to their clinical skills. Many have opted to pursue executive MBA programs to learn the business competencies they need to manage health care organizations. This article summarizes the educational opportunities available in executive MBA programs and discusses the value of business training for aspiring physician executives.     

Attracting qualified physicians to underserved areas. Part 2. Pay physicians more to practice in underserved areas.

With health networks searching for additional market share and with a projected 30.2 million to be enrolled in Medicaid HMOs by 2000, more health executives will be weighing various strategies of how to attract qualified physicians to practice in poor inner-city and rural areas. Most frequently cited as solutions are supplying more physicians, encouraging more medical school graduates to pursue primary care residencies, and modifying the number of international medical graduates entering U.S. residency programs. Part I of this article, which appeared in the November/December issue of The Physician Executive, reviewed the efficacy of these approaches. The second part explores a more pragmatic option: to simply improve the working conditions and pay substantially more to physicians who practice in "less desirable" locations. Although this idea is consistent with economic principles, drawbacks must be considered, such as: (1) the American taxpayers' reluctance to finance a more costly health care delivery system for the poor; (2) the inherent conceptual difficulties of a capitated Medicaid HMO serving as the linchpin for organizing, financing, and delivering care for the underserved; and, (3) many providers being expected to react in a fairly litigious manner to such an approach.     

Is there a physician union in your future?

Physician unions are in the news. Patient management and patient care decisions are increasingly being taken out of the hands of physicians and put into the hands of "The Suits." To take their case for a return to physician-driven patient care to the people, some physicians are joining unions. Some are even collectively bargaining for salary and other issues that are historically more closely associated with unions. The simple fact is that physician unions exist and the number of physicians joining them is expected to increase. What are the pros and cons of unionization? What motivates physicians to join unions, and what potential negative and positive factors are associated with physician unionization? This article reviews the pros and cons and the issues related to physician unions, for physicians attempting to answer the question, "Is there a union in my future?"     

Are your economic incentives self-defeating?

In a prior column (Long, H., "Group Practices May Ignore Economic Realities: Commingling of Rents and Returns," Physician Executive 14(5):33-35, Sept.-Oct. 1988), the author discussed the tendency of many group practices to ignore ordinary business economics. The examples discussed in that column was the inappropriate commingling of rents and returns from the various factors of production in medical practice. A frequent result of this is physicians who also have ownership interests and/or managerial responsibilities having an inflated perception of their worth as physicians because they are undercompensated for their ownership/management roles. In this column, the author addresses the inadvertent structuring of physician remuneration via income distribution or externally negotiated formulas that reward individual behavior that actually threatens the economic viability of the group.     

From medicine to management: the female physician executive

In a 1988 article in Physician Executive, Bonbrest recorded the number of women members (74) of the American College of Physician Executives (then the American Academy of Medical Directors) and urged senior managers to facilitate the entry of women physicians and minorities into management positions. This article relates historical trends for women in medicine and medical management and calls for increased attention to the slowness with which advancement for women has been achieved.     

Hospitals moving to payment of physicians for administrative duties

This article deals with whether physicians who devote considerable time to leadership and committee responsibilities are compensated, how they are compensated, who pays that compensation, and other related issues. To gather the information, the American College of Physician Executives surveyed a sample of 600 of its hospital-based members. There were 195 responses, representing hospitals of all sizes and types (community, government, for-profit, not-for-profit, urban, suburban, and rural) and medical staff sizes ranging from as few as four to as many as 1,300. Uncovered was what appears to be a trend to payment of physicians for these leadership services.     

Changing perspectives on the capital investment process

The environment within which institutions undertake commercial and industrial activity changes both as a result of decisions dependent on the institution itself and as a result of decisions independent of the institution. In recent years many of these changes have resulted in changing perspectives on the range of criteria which should be considered when determining how and where large corporations should invest their money. This paper examines these changes in corporate practice and identifies the cumulative results of these changes in the environment of corporate activity. The paper also examines some of the key elements in new approaches which corporations are adopting to capital investment decisions by utilizing data on a broadly based research project which examines in depth the capital investment/ resource allocation processes of five large, worldwide, manufacturing firms. The subject is of vital importance to large and small businesses, both because of the crucial importance of investment decisions and because of the importance for future strategic planning of identifying the environment within which corporate activities take place.     

Get real: what will draw physicians to the Web?

What are physicians waiting for? What will it take to stimulate widespread adoption of Internet medical systems? How can health care leaders and physicians help the technology innovators and the executives of technology firms understand the components necessary to assure physician acceptance and utilization of new tools? (1) Don't underestimate the personal nature of a physician's practice. It really isn't a "business." (2) Most physicians are not Luddites; they are just extremely pragmatic and practical. (3) For the majority of physicians to adopt a new technology in their private office practice, it must address three major issues: money, hassle, and patient care. There are many obstacles to adopting the new technologies that are the result of physician training and expectations and the current models of payment and revenue generation. Some technological innovations are presented to physicians without sufficient respect for their knowledge of how medical practices really work. The benefits promised often don't match with the needs structure of the physicians. As a consequence, the cycle of diffusion of these new systems is extended and delayed.     

Correcting the practice styles of errant physicians

In spite of their reluctance, physicians cannot continue to avoid judgments on the practice styles of their professional colleagues. Both tort law and an increasingly aggressive buyer and consumer community demand attention to problem physicians. Physician executives can play a leadership role in helping physicians understand their role in the peer review process.     

Physician profiling: trends and implications

In the October 1995 issue of Physician Executive, the author discussed the general notions of profiling of professionals, comparing the emerging methods of profiling of physicians to methods already in place for profiling professional athletes, investment bankers, and others. In this issue, the author provides details on specific methodologies in place for profiling physicians. While the science of profiling may be in its infancy, managed care organizations and third-party payers are clearly demanding more precise and useful information on the practice patterns of the physicians they hire or contract with.     

Clinical reengineering. Integrating medical and operational management

In the continuing push for cost containment in health care, many organizations have turned to cost reduction methods that fundamentally change the way care is delivered. As health care organizations continue to make financially-driven staffing changes that impact patient care, medical leadership must take on greater responsibility for operational management. Physician executives are uniquely qualified to take on leadership roles in work redesign, and must do so to ensure excellent and fiscally-responsible patient care. This article presents a proven methodology for work redesign that helps physician executives apply their clinical skills to operational management in designing new health care delivery models.     

A comparison of quality and utilization problems in large and small group practices

Physicians practicing in large, multispecialty medical groups share an organizational culture that differs from that of physicians in small or independent practices. Since 1980, there has been a sharp increase in the size of multispecialty group practice organizations, in part because of increased efficiencies of large group practices. The greater number of physicians and support personnel in a large group practice also requires a relatively more sophisticated management structure. The efficiencies, conveniences, and management structure of a large group practice provide an optimal environment to practice medicine. However, a search of the literature found no data linking a large group practice environment to practice outcomes. The purpose of the study reported in this article was to determine if physicians in large practices have fewer quality and utilization problems than physicians in small or independent practices.     

Recognizing the power of diversity

"The trouble with the future is that it usually arrives before we are ready for it." While Arnold H. Glasgow did not have diversity in mind when he made this statement, his thought is relevant to that topic nevertheless. In fact, almost everything in the health care environment of the 1990s is fluid, making the future a question mark. Among these changes is the demographic composition of students entering medical school and of patients. Consider the following. While 14 percent of today's physicians are people of color, that number increases to 25 percent for current medical students. In the past 10 years, the number of female physicians has seen the largest percentage growth, followed by American Indians, Blacks, and Hispanics. Physician executives who have vision and energy can capitalize on this demographic revolution and convert diversity into a competitive advantage once its boundaries are understood.     

The medical director as educator: an interview with Elizabeth M. Gallup, MD, JD, MBA. Interview by Richard L. Reece

Richard L. Reece, MD, interviewed Elizabeth M. Gallup, MD, JD, MBA, on July 9, 1999, to talk about the evolving role of the physician executive. Dr. Gallup discusses how medical directors have evolved from a purely clinical role to participating in the business side of medicine as well. The traditional medical director, a Dr. No who denies treatment and watches clinical performance, is now becoming an educator helping physicians to manage their behavior and change their practices based on comparative data. Her book, How Physicians Can Avoid Surrender and Lead Change: Gaining Real Influence in Your Own Health Care Organization Before It's Too Late, (American College of Physician Executives, 1996) promotes acting together as a group if physicians want to stay independent and not become employed. Independent physicians can form IPAs and act together as a group, avoiding some antitrust laws. Unless physicians get together and act as a group, she says, they are doomed to further and further erosion of their economic interests as well as their clinical autonomy.     

Serving the public by serving the profession. Interview by Wes Curry.

With the formation this year of the American Board of Medical Management, the American College of Physician Executives took a giant step toward formal recognition of the medical management profession as a specialty of medicine. Much needs to be done, however, to make that dream a reality. Late last year, Physician Executive talked with Donald G. Langsley, MD, Executive Vice President of the American Board of Medical Specialties (ABMS), about the certification process for specialties of medicine and about the role of ABMS in ensuring high standards for the medical profession and for the practice of medicine.     

The physician exodus from hospitals

Physicians are spending increasingly less of their work week in the hospital. This is true of surgeons because they are performing more ambulatory surgery, often off the hospital premises, and for primary care physicians because they are delegating hospital care of their patients to others. What are the effects of this physician exodus on hospitals, patients, physicians, and medical education? Some of these consequences are explored, from disruptions in the continuity of care, to increase in practice productivity, to preparing undergraduates for the realities of medical practice.     

Medical practice in large-scale organizations.

The traditional role of the physician as the principle resource allocator in the health care system is rapidly giving way to a shared decision-making. As more and more physicians practice in large organizational settings, an adversarial relationship is developing that affects both the quality of care and the efficiency of medical practice.     

Physician executives explore "new science" frontier. Bridging the communications gap between medical staff and administration.

Physician executives are well positioned to take on a new leadership role: chief technology officer. Discover how you can combine your medical/scientific knowledge and business know-how to help usher in a new age of technological innovation.     

Quality improvement's new focus yields quantitative results

Health care quality improvement methods are now undergoing fundamental change. The emphasis is shifting from inspection of physician practices to continuous improvement of clinical processes validated by quantitative results. This change is long overdue. Traditional quality assurance methods that operate retrospectively and alienate physicians are not useful in a marketplace where quality and cost control are a matter of survival. Physician practices are only as good as the institutional processes they rely upon, and any quality improvement method that alienates physicians is doomed. Quality improvement is impossible without the support of physicians, because true improvement is driven and quantified by clinical data. Physicians are needed to interpret that data.     

The evolving role of the primary care physician

In today's climate of health care reform, the title of this article might more appropriately be "Is the Role of the Primary Care Physician Evolving or Going the Way of the Dinosaur?" According to Koop, primary care is in trouble. Whereas only 29 percent of U.S. physicians are primary care physicians, in Great Britain, 72 percent of physicians are primary care physicians and in Europe and Canada the average is 50 percent. Many U.S. primary care physicians are in the later stages of their careers and nearing retirement age. Unless the supply increases, this number will dwindle further. However, in 1992, only 14 percent of U.S. medical school graduates were headed for primary care careers. Even if the supply of primary care graduates were increased to 50 percent of the graduating medical school class, it would be well into the next century before the ratio of primary care physicians to specialists would be equal. Primary care is at a critical juncture and the next few years will decide the fate of the primary care physician. Given the state of primary care today, I believe that a fundamental look at the assumptions regarding the role of primary care physicians is in order. The current health reform movement has placed a major responsibility on primary care to solve many of the problems in health care delivery today, such as cost, utilization, and prevention. Many health care organizations are planning strategies involving primary care providers, and physician executives can play a key role in these decisions.