July 31, 2023
Providers | Tea Leaves
  • In the past 10 years, there has been a dramatic shift in physician practice ownership as less than half of doctors now work in private practices, according to a new analysis. Between 2012 and 2022 the share of physicians working in private practices fell from 60 percent to 47 percent. In contrast, the share of physicians working in hospitals as direct employees or contractors increased from 5.6 percent to 9.6 percent in the same 10-year time period, and the share of physicians working in practices at least partially owned by a hospital or health system increased from 23.4 percent to 31.3 percent, according to a benchmark analysis the American Medical Association. The analysis found that four of five physicians flagged the need to better negotiate favorable payment rates with payers as a very important or important reason in the decision to sell their practice to a hospital or health system. (Article here)
  • While most health system’s margins have improved in 2023, analysts say that as more services move from the outpatient sphere to patients’ homes, there could be a negative impact on bottom lines. Even as hospital-at-home can expand access to services for patients, systems that rely heavily on inpatient care may not be prepared for the shift. Large, expensive facilities are at risk because they need to be fully occupied to be financially sustainable. (Article here)