Hospital Physician Acquisition Proves Costly

A recent poll conducted by the American College of Physician Executives (ACPE) explored the costs of hospitals or health systems acquiring physician practices.  The poll indicated that 32 percent of the 459 respondents said costs went up after acquisition while only 5 percent said costs decreased.  The remaining respondents either weren’t sure (12%) remained the same (16%) or the situation was not applicable (35%).  According to FierceHealth, several participants said the cost increase is temporary and will change once healthcare switches from a volume-based reimbursement model to one focused on value and quality of care.

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One thought on “Hospital Physician Acquisition Proves Costly

  1. The FierceHealth (participants) response, “… the cost increase is temporary and will change once healthcare switches from a volume-based reimbursement model to one focused on value and quality of care”, is notably void of; assumptions, metrics, a time frame, and there are no citations from the preponderance of organizations they seem to suggest have provided a path to follow and would suggest the ACPE results are temporary. With an industry changing like healthcare does, any report is likewise, static. But, IMO the reported results of the ACPE survey are very valid and reflective of my own decades of experiences. The only times I’ve seen physician practices make financial sense is based on the productivity of the physicians practices collectively, however structured. Competition in healthcare is really not a cost constraint, but that isn’t the topic here.

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