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BUSINESS OF
MEDICINE
Concepts to
consider when
measuring
physician
productivity
By Joseph P. Gonzales, MHA, FACHE, PMP
When discussing productivity with respect to a profession, it something or someone. The use of measurements is usually a
usually is part of a conversation with respect to compensation, means of improving a person or situation. An employee’s annual
and this may apply to both “employed physicians” and “physician review is designed to determine if they have met their objectives.
owners in group practices.” The purpose of this article is to pro- Raises or bonuses may be based on meeting objectives and com-
vide some information as it relates to the topic of physician pro- parisons to peers. Now consider patient care. If a child’s weight
ductivity. It is not meant as the last word on the topic, nor is it is off the age-height-weight scale at a well-baby visit, the parents
intended to be comprehensive in nature, but it can serve as a sort are counseled in an attempt to bring the child to a healthy weight.
of primer on the subject both for physicians and others who are If an HbA1c result is high compared to norms, the diabetic pa-
interested in the topic. tient’s medications and diet are managed more closely.
INTRODUCTION To be an effective clinician, one must understand many clinical
In most professions, to include healthcare, the term “produc- values, and to be an effective manager, you must understand many
business values. As a provider, you are responsible for monitoring
tivity” is used as a measure of output (e.g., widgets, cars, or patient not just the health of your patients but also the health of the clinic,
visits) that can be produced given a combination of inputs (e.g., practice, or facility in which you work. You also may have respon-
number of employees, hours worked and machines). Productivity sibility related to mentoring peers or managing other providers.
can be measured for a specific input, such as labor, or one may Your compensation also may be tied to productivity and quality
consider the productivity of a system — i.e., productivity related measures. Optimal patient care should be the primary objective
to spending in a hospital, physician practice, health system, or in any medical practice, clinic, or hospital, but the financial suc-
within a country — by studying the output achieved for a given cess of the practice is also critical. A business or practice con-
amount of resources devoted to healthcare. stantly in the red will, at some point, cease to exist and will no
longer be able to provide patient care. By having a better under-
Like life, the issues related to productivity usually begin and standing of the various performance measures used to determine
end with some form of measurements. What did the baby weigh a practice’s health, a provider can do his part to keep the
and what was its length at birth? How old was she when she practice/business viable, even thrive, and remain functioning in-
passed away? Our development and progress through life, school definitely for the patients they serve.
or sports, is associated with some form of measurement against
34 San Antonio Medicine • May 2015
