Physician Employment Trend: Is it the Physician's or Hospital's Best Interest?

There has been a lot of recent press on the increasing trend of hospital employment. However, employment models don't necessarily mean support from physicians or clinical integration, according to a new study released today by the Center for Studying Health System Change (HSC).

Following HSC's previous research that physician employment is on the rise, physicians reported feeling pressure to align with a hospital system. According to Accenture Health, by 2013, less than one-third of physicians will be in a private practice model, and instead will opt for employment under a larger health system.

However, under an employment model, physicians said they felt pressure to order more expensive tests or bring in more patients as part of a revenue- or volume-generating strategy.

Some physicians were deterred from employment because they wouldn't see the fruits of their labor. For instance, former independent physicians complained that, although their practice hadn't changed except for the hospital employment status, the hospital saw increased Medicare payments.

The report showed that physicians were attracted to hospitals that offered advantages such as financial security and work-life balance. For instance, the hospital could negotiate higher compensations with health plans that a private practice could not on its own.

Read the full report at The Center for Studying Health System Change, or click here:
http://www.hschange.org/CONTENT/1230/