This is not going to be a popular take , but this will hurt employment or comp of medical fellows & residents, who expect to go into private practices.
In summary, established SMB independent practices will offer fewer w2s to freshly minted MDs. Expect established doctors to require buying into a practice's equity, meaning the odd new MD with funds to buy in will do so (but will take less comp vs w2 salaried) ; while the majority of those without funds to buy in (due to a pile of student loans), will end up as W2 ...but for hospital groups.
Why ? Existing doctor-owners will be concerned with paying for the risk of training new doctors who can then take the existing practice's foot traffic with themselves across the street on a whim. Why Paying? The new w2 doctor is a loss leader a period of time, which varies across specialties. They are slower, don't know how to use new EMR, etc
So yes, i'm for competition, but expect that hospitals will benefit tremendously from this new restriction in NYS. And healthcare costs will rise accordingly.
If they don't want that to happen they can simply pay deferred compensation like non competes work in every other nation instead of holding them hostage through medical debt service.
I think that's what should happen, but what do you do in a situation where you have 2 market segments paying differently?
Most HFT firms pay deferred comp. There's almost no industry alternative offering to pay pay-as-you-go compensation to a trader.
Even if all private practices decided to go with deferred comp, hospitals would just seem all the more attractive with pay-as-you go comp. Hospitals will never be scared of an individual doctor leaving them to compete. Its actually already illegal - existing regulation requires existing hospitals to *approve* of new hospitals being built - yes, this is wild.
This is how it works for small vs. large business in ANY skilled/professional field, whether we're talking lawyers, accountants, engineers, whatever. If you want employees to stay, then incentivize them accordingly. If that means that junior MDs make low W2 and then that ramps up as they gain experience, that seems reasonable to me! Anything else is fundamentally not fair.
In summary, established SMB independent practices will offer fewer w2s to freshly minted MDs. Expect established doctors to require buying into a practice's equity, meaning the odd new MD with funds to buy in will do so (but will take less comp vs w2 salaried) ; while the majority of those without funds to buy in (due to a pile of student loans), will end up as W2 ...but for hospital groups.
Why ? Existing doctor-owners will be concerned with paying for the risk of training new doctors who can then take the existing practice's foot traffic with themselves across the street on a whim. Why Paying? The new w2 doctor is a loss leader a period of time, which varies across specialties. They are slower, don't know how to use new EMR, etc
So yes, i'm for competition, but expect that hospitals will benefit tremendously from this new restriction in NYS. And healthcare costs will rise accordingly.