Question

The president of the medical board wants to hire a premier sub specialist to increase patient volume and income. The subspecialist's reputation is such that your hospital would quickly become the "go to" destination for this subspecialty. He is, however, demanding 50% higher salary than other members of the medical staff. What role does fair market value play in the facility's decision?

Answer 1

Market value and faith of public matter everywhere and it remains the same in the case of the healthcare field also. If an organization wants to achieve higher popularity and income, they need to improve their healthcare system and policies. It definitely includes better patient care. Therefore the efficiency of specialists play an important role here. If an organization wants to hire a skilled specialist for their department, the medical board should ready to give him a higher salary compared to other physicians. Market value plays a lot in the facility's reputation and annual income. So if they recruit reputed specialists for their organization, it will definitely become a "go-to " destination only because of the quality of medical care people getting from there.