PA On-Boarding Impact on Finances
A recent article from the AAPA further demonstrates the growing job market for PAs. In a few online discussion groups I’ve seen questions in regards to a dwindling job market for PAs. All signs point to a growing market, and further growth of the PA career in the future.
The article further states that it is a “buyer’s market” for PAs. Although there are plenty of opportunities for PAs, it is important for new graduates to keep in mind that your first job might not be your dream job. There are only so many first assist positions in plastic surgery in Hollywood, CA available. If you’re looking for a job in a specific location in a certain specialty you might need to gain some experience before that position is open.
“When discussing profit/contribution margin, Lowe shared an example of a PA/NP making a base salary of $111,000 versus a physician with a base salary of $229,000. Both providers see 2,000 Level 4 New Medicare patients in a year, but with the 100% reimbursement rate for the physician versus the 85% reimbursement rate for the PA/NP, the PA/NP still makes a larger profit margin.”
The above quote from the article shows the monetary value of hiring a PA or NP for an organization. The 85% rule is based off Medicare and some private insurance might reimburse at 100%, but with the lower base salary you can see how it works out for the organization to hire more PAs and NPs.
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I don’t think we should be replacing physicians, but instead using PAs and NPs to help supplement the work force to better meet the needs of patients who might need to wait months to see someone.
With the growing number of PA opportunities available it is important to remember your leverage when negotiating a contract. It is important to have realistic expectations, but it does provide opportunity to find extra benefits that an employer might offer; such as student loan repayment. I recently talked with a newly practicing physician, and that was at the top of his priorities when looking for a new job.
Another thing to look for is a bonus based on productivity, as this allows you to get paid for the work that you are doing. However, calculating productivity is not always an easy task for every specialty and might take some creativity.
There are plenty of reasons that organizations are hiring more PAs and with this growth in the field it provides more situations for PAs to find the opportunity that they want.
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