AcuteCare Telemedicine Blog


Physician Compensation Accounts for Only 8% of Total Health Care Costs

Physician compensation is commonly perceived as a factor in the rising cost of healthcare. According to a May 2011 report released by Jackson Healthcare, this is simply not the case. The report concluded that physician compensation accounts for only roughly 8% of the total annual healthcare costs in the U.S., and in fact, through telemedicine, doctors are able to provide a service which drastically reduces costs associated with physician clinical services.

From the report: “According to the most recent estimate from The Centers for Medicare and Medicaid Services (CMS), overall U.S. healthcare spending in 2009 was $2.5 trillion. CMS reports that physician clinical services account for $505 billion. Calculating the percentage using the most recent statistics on the number of practicing physicians in the U.S. from the American Medical Association and salary figures from MGMA, annual aggregate physician salaries total just 8.6 percent of total U.S. healthcare costs.”

AcuteCare Telemedicine, although founded by 4 practicing neurologists, is focused on improving patient access to quality care by lowering the costs for healthcare institutions.  The telemedicine services offer hospitals an affordable solution to providing 24×7 coverage to its patients relative to acute stroke care.

“As physicians, we dedicate our time to helping our patients,” comments Dr. Matthews Gwynn, CEO, AcuteCare Telemedicine.  “We may not be able to control rising healthcare costs, but we can identify cost effective solutions for healthcare providers that lower costs and improve patient care.”


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