As we celebrate our independence as a nation this week, the growing trend among physicians is to give up their practice independence in exchange for a hospital employed model. This is nothing new. The trend has been growing for more than a decade with nearly 60% of physicians practicing independently in 2000 down to approximately 39% today, according to the consulting company Accenture. But is this a bad thing? That depends on who you ask.
According to a study completed by the Center for Studying Health System Changes, this trend began as a quest by hospitals to gain market share. Under the premise that hospital employment would shore up referral bases and capture admissions, the trend has flourished. Just as hospitals have sought to increase patients in an increasingly competitive market, physicians seeking security and quality of life have flocked to this model and contributed to the movement. The primary reasons given by physicians for wanting an employed position are stagnant reimbursement rates, rising costs of private practice and a desirable work-life balance. According to a 2003 survey conducted with residents in their final year, 4% said their first choice would be hospital employment. By 2008, that number had jumped to 22%. In many ways there are numerous benefits for both hospitals and physicians who chose this model.
There is, however, a growing number of physicians hoping to slow or stop the current trend. Many in this group believe that there are still scenarios where the independent physician can thrive and succeed. A recent article in the Orlando Sentinel highlighted a group of independent doctors in Central Florida uniting against the trend towards hospitals buying physician groups. Their argument states that hospitals inserting themselves into the physician-patient relationships has the potential for higher costs to the patient due to facility fees, volume based compensation and increased testing. They believe that independent physicians should form trade associations to educate patients and represent the issues to legislators, business leaders and other independent physicians.
As our Healthcare model in America changes over the next few years, the importance for physicians and patients to educate themselves on those changes becomes more meaningful than ever. Speaking idealistically, the best model will include options for both physicians and patients to work or be seen in a coordinated care or private physician environment. The continued liberty of doctors to choose between practice settings is crucial for physician satisfaction and ultimately the quality of care provided to patients. Isn’t that what our Independence Day is all about?
Further Reading:
Independent Doctors Unite to Fight National Trend towards Hospitals Buying Physician Groups (Orlando Sentinel – online article)
Hospitals Are Going On A Doctor Buying Binge, And It Is Likely to End Badly (Forbes – online article)
Rising Hospital Employment of Physicians: Better Quality, Higher Costs? (Center for Studying Health System Changes – PDF)
Hospitals Rush to Employ Physicians to Shore Up Referrals, Admissions (Center for Studying Health System Changes – news release)
7 Trends in Hospital-Employed Physician Compensation (Becker’s Hospital Review – online article)
________________________________________________________________________________________________
by Brent Whitson, Senior Search Consultant at Fidelis Partners
Email: bwhitson@fidelismp.com
Phone: 949-441-1429
The post Have Physicians Lost Their Independence? appeared first on Fidelis Partners.