The upside down pyramid of healthcare
My wife noticed that I haven’t written as many articles recently. I mentioned that my passion for it ebbs and flows, plus we have been busier at work. I sheepishly bragged that I have written over 200 articles so far. Her comment was, “well, you have lots of opinions…” I don’t think that was a compliment.
But I am fired up about something right now, so time for another round of opinions.
This is something that has been slowly growing in the back of my mind. It usually intensifies when I have a patronizing online HR training where they talk to you like you’re a toddler.
Pyramid schemes
Back in the day, a pyramid scheme was where you had many lower level people conned into buying and selling product for people at the top. The lower level salesman would be sold that they would also achieve the great wealth at the top.
But that never happened, and the many at the bottom were just a funnel of wealth to the few at the top.
In a medical care network, you have many people at all levels. There are increasingly many more managers, board members, HR, etc who make the most money at the top.
Some of this is the industry’s fault. We now have so much more paperwork, bureaucracy and liability from the government and private sectors.
But these people don’t see patients, and don’t generate the revenue that pays for their salary, which is higher than yours.
But doctors are corrupt!
In contrast, doctors and clinicians who own their own clinic see many customers, and generate the revenue that pays their employees’ wages.
But, wait. We’ve been told for years that doctor’s can’t own their own company. That would be a corrupt conflict of interest.
And I’m sure in some cases that is true. But on the whole, the cost of administration overhead in a health care network is crippling.
You deserve a much higher cut
The problem is that we are enticed with shiny trinkets (actual trinkets at times, like pens with the company logo..) like health insurance, IRAs, HSA, etc.
As a populace we have been trained to think about retirement accounts. But the single greatest investment you can make is in your business and yourself.
Trust me on this, it grows exponentially over time. As most expenses are tax write offs, you are accumulating capital. You can either pay taxes, or in many cases buy real estate, equipment and expertise that helps fund your wealth.
You know how much the company charges for you to see a patient (if not, why not?) You also know what you make per hour. You’re literally paying others (more than you make) to criticize your job performance.
You can improve this situation. I owned my own clinic for 9 years, and was profitable. It wasn’t always easy or fun, but much of that was my own fault. My next article will spell out how to start your own business.
Learn from my mistakes, and help save yourself and healthcare.