Issue link: https://beckershealthcare.uberflip.com/i/1141789
10 CFO / FINANCE These 10 physician specialties generate the most revenue for hospitals By Ayla Ellison T he amount of revenue physicians gen- erate for hospitals is typically consid- erably more than their annual salaries, according to a recent survey by physician staffing firm Merritt Hawkins. e survey was emailed to roughly 3,000 hos- pital CFOs and other financial managers na- tionwide between October 2018 and Decem- ber 2018, and the survey results include data on 93 hospitals. Despite the relatively small data set, Merritt Hawkins believes the survey results are generally reliable and accurate be- cause the overall number for average annual revenue generated by all physician specialties for their affiliated hospitals has remained rel- atively constant over the 16 years the survey has been conducted. Below are the 10 physician specialties that generate the highest average annual net rev- enue for hospitals and the average salaries for those specialties, according to the Merritt Hawkins 2019 Physician Inpatient/Outpa- tient Revenue Survey. 1. Cardiovascular surgery • Average revenue: $3.7 million • Average salary: $425,000 2. Cardiology (invasive) • Average revenue: $3.48 million • Average salary: $590,000 3. Neurosurgery • Average revenue: $3.44 million • Average salary: $687,000 4. Orthopedic surgery • Average revenue: $3.29 million • Average salary: $533,000 5. Gastroenterology • Average revenue: $2.97 million • Average salary: $487,000 6. Hematology/Oncology • Average revenue: $2.86 million • Average salary: $425,000 7. General surgery • Average revenue: $2.71 million • Average salary: $350,000 8. Internal medicine • Average revenue: $2.68 million • Average salary: $261,000 9. Pulmonology • Average revenue: $2.36 million • Average salary: $418,000 10. Cardiology (noninvasive) • Average revenue: $2.31 million • Average salary: $427,000 n Hedge fund manager predicts CHS will go bankrupt By Ayla Ellison F irefly Value Partners Co-Founder and Portfolio Man- ager Ryan Heslop is bearish on Franklin, Tenn.-based Community Health Systems, according to Reuters. Mr. Heslop, one of several hedge fund managers who presented in early May at the Ira Sohn Investment Con- ference in New York, announced a short position in CHS during the conference. He said CHS will likely go bankrupt over the next few years due to rising debt costs and dwindling revenue per hospital bed. The company's "pile of debt and the declining profitabil- ity of hospitals make it almost certain that this patient will die," Mr. Heslop said, according to Reuters. CHS didn't immediately respond to Reuters' request for comment. During the conference, other discussions about for-profit hospital operators were positive. Glenview Capital Man- agement Founder and CEO Larry Robbins said he's bull- ish on hospitals overall, and owning stock in Nashville, Tenn.-based HCA Healthcare, King of Prussia-based Uni- versal Health Services and Dallas-based Tenet Healthcare is a wise decision, according to Barron's. n CEO Wayne Smith bets on CHS turnaround with $3M investment By Ayla Ellison F ranklin, Tenn.-based Community Health Systems Chairman and CEO Wayne Smith has purchased near- ly 1 million shares of CHS since May 3, according to the Nashville Business Journal. The transactions, which boosted Mr. Smith's ownership in CHS by more than 60 percent, occurred over three days and totaled roughly $3.3 million, according to the report. Mr. Smith upped his stake in CHS amid the company's turn- around efforts. CHS has been selling off hospitals over the last few years to drive down its debt load. The company car- ried $13.88 billion in long-term debt when it announced its divestiture plan at the end of 2017. CHS' long-term debt to- taled $13.39 billion as of March 31. Although Mr. Smith is betting his own cash on CHS' turn- around, others aren't confident the company's financial position will improve. During the Ira Sohn Investment Con- ference on May 6, Firefly Value Partners Co-Founder and Portfolio Manager Ryan Heslop said CHS will likely go bank- rupt over the next few years due to rising debt costs and dwindling revenue per hospital bed, according to Reuters. Shares of CHS closed May 8 at $3.46, up 9.8 percent from the day prior. n