HealthExec July 12, 2024
Over the past decade, there has been a big increase in the consolidation of private practices into hospital systems, largely driven by reimbursement policies. Clear examples of this are include Medicare payments that cover inflationary increases for hospitals, but not for physicians—and private insurance Medicaid payments to small practices that are often below Medicare rates. The American Medical Association (AMA) said these policies impact the viability of these practices.
While current healthcare industry trends lean toward the creation of larger physician practices, the AMA said more than half of doctors still work in practices with 10 or fewer physicians. But, as payment levels continue to decline and fail to keep up with rising practice costs and inflation, some practices are...