Administrators Make The Most

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I have been saying for years that one of the biggest problems in healthcare system is administrators. They have been multiplying faster than tribbles. Hence the name administribbles. There has been at least a 3000% increase of them over the past 40 years since it was last studied in 2012. Now comes this in the NY Times:

The base pay of insurance executives, hospital executives and even hospital administrators often far outstrips doctors’ salaries, according to an analysis performed for The New York Times by Compdata Surveys: $584,000 on average for an insurance chief executive officer, $386,000 for a hospital C.E.O. and $237,000 for a hospital administrator, compared with $306,000 for a surgeon and $185,000 for a general doctor.

Yup, there are more of them and they get paid a lot more than doctors. Here is the best part. “Studies suggest that administrative costs make up 20 to 30 percent of the United States health care bill”! Family doc salaries make up around 2%. Remember, administrators don’t make money for the system. They don’t treat patients. They don’t produce a widget and then sell it. Instead they make money off the backs of doctors who have to see more and more patients just to keep pace. It’s sickening.

Douglas Farrago MD

Douglas Farrago MD is a full-time practicing family doc in Forest, Va. He started Forest Direct Primary Care where he takes no insurance and bills patients a monthly fee. He is board certified in the specialty of Family Practice. He is the inventor of a product called the Knee Saver which is currently in the Baseball Hall of Fame. The Knee Saver and its knock-offs are worn by many major league baseball catchers. He is also the inventor of the CryoHelmet used by athletes for head injuries as well as migraine sufferers. Dr. Farrago is the author of four books, two of which are the top two most popular DPC books. From 2001 – 2011, Dr. Farrago was the editor and creator of the Placebo Journal which ran for 10 full years. Described as the Mad Magazine for doctors, he and the Placebo Journal were featured in the Washington Post, US News and World Report, the AP, and the NY Times. Dr. Farrago is also the editor of the blog Authentic Medicine which was born out of concern about where the direction of healthcare is heading and the belief that the wrong people are in charge. This blog has been going daily for more than 15 years Article about Dr. Farrago in Doximity Email Dr. Farrago – [email protected] 

  3 comments for “Administrators Make The Most

  1. mamadoc
    December 3, 2014 at 9:12 pm

    Rather like vermin, they breed fast. And have you noticed how many of them are nurses? Is it any wonder that hospitals have become hostile to the very doctors they depend on for their existence? Before I quit going to the hospital there was a big sign in the hall “Nurses lead the way.” I’ve seen where they’re leading and I don’t wanna go and don’t want my patients to go either.

  2. December 3, 2014 at 12:20 pm

    Definitely a math problem in the first paragraph — there has been a huge increase of administrators in the 40 years since 2012?

    • Doug Farrago
      December 3, 2014 at 1:24 pm

      No that is correct.

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