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Kip Piper, MA, FACHE
Health care strategist, speaker, and writer. Expert on Medicare, Medicaid, and pharma, biotech, and device industries. President, Health Results Group LLC. Senior Counselor, Fleishman-Hillard. Senior Consultant, Sellers Dorsey. Visit KipPiper.com. Or email Kip here.
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Physician Income: Are Rural Docs Better Paid?
posted: January 28, 2005

Doctor Assessing Young Boy.jpgAdjusted for cost-of-living differences, rural physicians have 13 percent more purchasing power than urban physicians. And while there are fewer physicians per capita in rural areas, the overall urban-rural disparity is likely due to an over supply of physicians (particularly specialists) in urban areas.


So says a new study by the Center for Studying Health System Change, a respected nonpartisan policy research shop funded primarily by The Robert Wood Johnson Foundation. Their findings dispel the widely held myth that low pay is an obstacle to recruiting docs to serve rural areas. The authors acknowledge that this higher purchasing power may be "needed to compensate physicians for other disadvantages of rural practice, including less control over work hours, professional isolation and a lack of amenities associated with urban areas."


Some implications to consider:


● Future Medicare and Medicaid rate increases for rural docs should target those specific areas with inadequate patient access.


● Policy makers should invest in innovative ways to reduce the professional isolation and inflexibility of rural medical practice.


To read the full report, click here (PDF).

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Consider This
In ancient China, physicians were paid only when their patients were kept well and often not paid if the patient got sick. If a patient died, a special lantern was hung outside the doctor's house. Upon each death, another lantern was added. This is the first known use of the two most powerful drivers for health care performance - incentives and transparency.
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Profile of Kip Piper, MA, FACHE

Healthcare Consultant
President of Health Results Group LLC. Senior counselor with Fleishman-Hillard, the top public relations and communications consultancy. Senior consultant with Sellers Dorsey, the leading Medicaid and health reform consultancy.

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Leading authority on Medicare, Medicaid, and health reform. Specialist in pharmaceutical, biotechnology, medical device, and health plan industry issues. Policy, finance, coverage, reimbursement, health and drug benefits, marketing, business development, innovation, and public affairs.

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Advised Fortune 100 companies, pharma and biotech firms, medical device firms, top federal officials, governors, members of Congress, foundations, and foreign leaders. Skilled, creative business and policy strategist and problem solver.

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Popular speaker at health industry conferences. Topics include Medicare, pharma business issues, Medicaid reform, coverage and reimbursement, and health innovation. Keynotes, seminars, and briefings.

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Testified before Congressional committees, negotiated major legislation, led groundbreaking programs, and designed and implemented numerous health innovations.

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Editor of the Piper Report, a leading health care blog with thousands of regular readers. Medicare, Medicaid, pharma, biotech, and more. News, advice, solutions, and resources.

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Upcoming books include Medicare and Medicaid from A to Z and MediStrategy: Medicare and Medicaid Business Strategies.

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Business and policy editor of American Health & Drug Benefits, peer reviewed journal for decision makers in health plans, drug plans, PBMs, CMS, states, and large employers, with circulation of 30,000.

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To learn more, please visit Kip at www.kippiper.com.
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