Resist allocating staff costs to individual doctors

Allocating staff costs to individual doctors frequently backfires – There are too many situations where doing so not only broke down the cohesiveness of the physicians, it also disrupted staff functioning. Avoid this problem by sharing staff costs collectively.

The exceptions: The physician with his or her own dedicated nurse. Groups with dedicated hospitalists and office-based doctors frequently go to war over how much hospitalists should contribute to the staff overhead cost in an office they rarely use. In that case, directly allocating costs may keep the peace.

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