Thursday, October 14, 2010

Hospitals Lure Doctors Away From Private Practice

According to MGMA, in 2009 approximately 50% of new physicians hired were hired by hospitals. Currently, 1 out of every 6 physicians work directly for a hospital, and there is a significant increase in the percentage of physicians choosing hospital based positions.

Hospitals are more prepared to entice physicians to hospital employment models because of their business strategies. Hospitals project hiring more physicians as employees guarantees a more steady stream of patient referrals and improves patient care through better coordination of services.

Physicians, particularly young physicians out of training, are preferring hospital based and hospital employed positions because of the added security and benefit packages along with the better quality of life hospital practices tend to offer, call shared amongst several other physicians as well as not worrying about the time and expenses associated with a private practice such as leases, hiring administrative and medical staff, and billing.

Hospitals are being more competitive in their offers with not only salary options but also RVU (production) based incentives allowing physicians to be in better control of their income based on how much they wish to work.

One concern experts have is employing more physicians could give hospitals more negotiating power with health insurers, thus driving up health insurance prices.

Read the full article in Physicians News Digest, or click here:

http://www.physiciansnews.com/2010/10/14/hospitals-lure-doctors-away-from-private-practice/

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