Visit the Healthcare Industry Pipeline at - Download White Papers and Case Studies, Register for Webcasts!
Search Healthcare
Business at HIN:

Members Only
Click here for
subscriber access,
key word searches or
to download articles
of interest.

Audio Conferences

A complete selection of health management resources for healthcare executives. Your one-stop shop for the leading publications you need! Click here to browse our categories or conduct key word searches to find the products that best meets your needs!

HIPAA Desktop

Link your company's Web site or Intranet to HIN

Career Center
The Healthcare Intelligence Network Career Center brings together qualified healthcare management professionals seeking new career opportunities and healthcare organizations that are seeking to fill health management positions within their companies.

Earn gift certificates by referring your colleagues to the Healthcare Intelligence Network!


Healthcare Business
Story of the Week

Share this article with a colleague!

Click here for a Free trial to Jenks Healthcare Business Report

Increased Hiring of Hospital Physicians May Drive Up Healthcare Costs

The trend of hiring more hospital physicians might be driving up healthcare costs, and not improving quality of care, says a new study from the Center for Studying Health System Change (HSC).

The pace of hiring hospital-employed physicians has quickened largely due to hospitals’ quest to increase market share and revenue, the study says. At the same time, stagnant reimbursement rates, coupled with the rising costs of private practice and a desire for a better work-life balance have contributed to physician interest in hospital employment.

But instead of improving care, hospital pressure on employed physicians to order more expensive care is driving up costs, a trend that will continue unless the FFS payment system that rewards volume is revised, the study says.

The study, funded by the Robert Wood Johnson Foundation and the National Institute for Health Care Reform, is based on HSC’s 2010 site visits to 12 nationally representative metropolitan communities, including Boston, Cleveland, Indianapolis, Miami, northern New Jersey, Phoenix and Seattle.

Other key findings include:

  • Hospitals usually negotiate health plan contracts on behalf of employed physicians, gaining higher rates to offer more attractive compensation than independent physicians could negotiate on their own.
  • In one market, at least two cardiologists declined hospital employment offers because they perceived the pressures to drive up volume were stronger than those in their mid-sized, independent cardiology group.
  • It is possible for a physician practice to be acquired by a hospital, not change locations or even practice operations, yet the hospital now receives significantly higher Medicare payments.
  • Hospital consolidation continues to be an important factor in physician employment by hospitals. In markets with high hospital concentration, physicians face pressure to align closely with one hospital system or another.

Following enactment of national health reform in March 2010, hospital executives also increasingly cited physician-hospital integration through physician employment as key to preparing for expected Medicare payment reforms, including bundled payments, ACOs and penalties for preventable hospital readmissions.


Source: The Center for Studying Health System Change, August 18, 2011

Healthcare Trends & Forecasts in 2011: Performance Expectations for the Healthcare Industry

Feeling the squeeze from softening service demands, growing competition, reimbursement cuts and increased regulatory oversight, the healthcare industry is ripe for financial relief. In this 35-page resource, two key thought leaders look ahead to healthcare reform 2.0 — implementation and rollout and craft a healthcare reform strategy checklist, putting the smart money on models of consolidation and clinical integration that will not only increase throughput and market share but also reduce unnecessary utilization and cost.

Healthcare Trends & Forecasts in 2011: Performance Expectations for the Healthcare Industry is available from the Healthcare Intelligence Network for $117 by visiting our Online Bookstore or by calling toll-free (888) 446-3530.

Share this article with a colleague!

IMPORTANT NOTICE: This information is designed to provide accurate and authoritative information on the business of healthcare. It is distributed with the understanding that Healthcare Intelligence Network is not engaged in rendering legal advice. If legal advice is required, the services of a competent professional should be retained.

© Copyright 2011 Healthcare Intelligence Network Call toll-free (888) 446-3530