Overhead Working Group and Physician Compensation Committee

July 9, 2019

Dr. Alison Clarke, AMA President

Dear Members:

You may have seen an update bulletin from the Physician Compensation Committee today, including reference to the recent Deloitte overhead study and the committee’s discussion. Here is a link to the update if you have not seen it yet.

https://mailchi.mp/bde04dd6ccb6/physician-compensation-committee-update-213663?e=382bc45f52

As I wrote to you April 25 in a President’s Letter, the Board of Directors formed a small working group in response to concerns raised by the Representative Forum and sections about the results provided by Deloitte. The working group was asked to review what has been provided and then recommend (i) what, if any, elements of the study are usable and (ii) the next steps for ensuring usable overhead information in the Income Equity Initiative.

The initial report of the working group was reviewed by the Board in June. The working group provided a recommendation that additional work would be needed to improve our understanding about physician office costs. This was reported to PCC, which originally commissioned the study, with the result that you’ve seen.

The Board is in the process of contacting each of the section presidents, letting them know what is in the Overhead Working Group report. The report will also be sent to all members once these conversations have been held.

The next big issue is determining next steps. Discussion will begin at the next Board meeting July 18-19 and will continue in other venues as well. The Board’s intent is to leave an OWG in place to help provide advice and insight.

I want to thank the Overhead Working Group members for their expedited and excellent work. Thanks also to all the section executives who have been doing the heavy lifting with the project since it began. You are well supported by their efforts.

You can reach me directly or comment as follows:

  • Communicate with me privately and directly by email if you would like a reply: president@albertadoctors.org.
  • Or comment publicly on this President’s Letter below.

Warm regards,
Alison M. Clarke, MD, CCFP, FCFP

1 comment

Commenting on this page is closed.

  • #1

    Brian McAlpine

    Physician

    6:54 PM on July 09, 2019

    What’s so difficult..?
    Ask EACH and EVERY MD.. to have their accountant submit what they pay in overhead.. not including ‘income sprinkling’ with incorporated MD’s.. which usually isnt that big.
    For instance.. the newly minted urology group in Kaye Clinic.. run by AHS.. how much do they individually pay in overhead? Like Trump’s tax returns.. lets look.
    Rural GP’s.. overhead in ‘the low rent district’...how about it..?
    Walk- in ONLY.. docs.. in much of urban Alberta.. MediCenters.. now owned by McKesson.. a large American company.. prior to them Katz and Rexall..
    their all on percentages.. how much are they surrendering to McKesson.. they NEVER advise over the phone.. ALWAYS must come IN.. for normal results...
    It can’t be that hard.. where and what is the hold up??
    I’m listening..

The AMA advances patient-centered, quality care by advocating for and supporting physician leadership and wellness.