doctors charge too much ..part 2
whenever I do a post talking about doctor’s charges…I get some amazingly stupid messages:
- Do doctors really pay Income tax?
- Doctors surely overcharge
- People have examples of how much doctors overcharge
Let me rebutt some of those stupid messages on my Twitter wall and what I received on What’s app. Not all are worth rebutting, but the article went viral yesterday…and not one doctor seems to have responded…
I know at least 4-5 doctors who pay taxes in 8 digits. All the doctors I know pay Income tax, and almost all of them are in the highest tax slab. No, I am not getting into this stupid argument about doctors paying or not paying income tax.
The argument that doctors charge too much is also amusing. In Mumbai I can find you a doctor who charges an X amount for say one root canal surgery. I can also find you a dentist who charges 3X and another doctor who charges X/3. Take your pick. You have a huge choice of doctors. Fairly obviously the doctor in Santacruz west will charge more than the doctor in Kalina Market. After all how much you charge is also a function of costs, and what the patient will pay. If you think a doctor is expensive, move on. You can find a less expensive doctor, and the doc can choose to find a better paying patient.
If you think that medicine is social service, you should go a hospital run by a trust or by the municipality or state government. Of course they are there and they are almost free. Nothing stops you from going there. Funnily we know that tea is available on the foot path for say Rs. 15 and you can get tea in a 5* hotel for Rs. 1000 also. Different markets, different service, and different pricing. Pick your choice.
Then there are doctors who don’t understand the economies of a big hospital. A dentist buys a chair for Rs. 30L but a hospital buying 50 shares will end up paying Rs. 10L for each chair. The economies of scale kick in in all the services. A hospital chain can tie up with a medical college – for doctors and nurses. A young small doctor cannot think of doing this. Doctors salaries are not high at all – a well paid doctor at the age of 50 could be earning say Rs. 3L a month. A young MBA or CA could be earning this at the age of 28. Big difference. So I do guess that the common man earning Rs. 5000 a day (Rs. 20L ctc) should not be cribbing about a doctor charging Rs. 1500 for a 1 hour appointment. Even he is earning that kind of money on a ctc basis. Doctors look at a hospital bill of Rs. 200,000 and say “but I have been paid Rs. 30000 only out of this”. COMPLETELY wrong way to look at that – it takes money, effort and enterprise to set up a hospital. It is like a cook looking at a dish and saying “Rs. 1900…the subzi is only Rs. 4 ”
People should learn to see in that perspective.
A hotel and a hospital have to charge for the cost of real estate, the cost of building the hospital, people, training, advertising, handling free patients, leave salary for staff, safety, insurance, maintenance….ONLY when you do it yourself you understand all this.
No, most doctors do not understand all this. Those who do earn it and own hospitals…
rkhgajjar
Being a Medical Anaesthesia Doctor,I have only one line to say.
Everyday I pray that I get a Genuinely Good Doctor when I am on death bed, because I know , understand what Medical fraternity is facing today,& how the best of intelligent are deserting medical field.
My kids, both , intelligent ones are CAs ,easily through & much much early employed.
They never desired, I never pushed for Medical field.
Medicine is no longer a Profession now,it is Health care industry, where Health care provider ,Doctor ,has no influence in any aspects,he is simply a part of Machinery,very much disposable.
Thanks a lot.,Sir,for saying so many things ,which we ,as Doctors,always feel.
Pradeep
Clearly the idea of Subramoney.com is only to those earning 10 digit salaries and paying 8 digit taxes along with those who can afford to do business with this fraternity. All others are only fit for cribbing.
Ratanchur
Well said Pradeep
Sairam
Hello sir, your explanation is clear but as a Dentist i need to add few words, in this you have not speaken about doctors practicing in rural areas or district headquarters, most of the population is in rural areas, in these rural areas or in a town the pricing is different, in a town the land rates or real estate and rents are high but the charges wil be not so high and in other towns rents and land rates are less but the pricing is same as in other towns. I thought you are only highlighting cities, but think beyond that do a survey on towns then you can conclude in part 3.