Healthcare DIVE December 8, 2021
Dive Brief:
- The acquisition of independent physician practices by hospitals, a trend that has accelerated rapidly in recent years, is linked to a modest drop in doctor compensation, a report published in the December issue of Health Affairs found. The 0.8% reduction in average income suggests physicians may not see direct financial benefits from hospitals buying practices, according to the researchers.
- The findings contrast with evidence that hospital systems’ profits tend to increase as prices and spending rise after integration of physician practices.
- Larger reductions in doctors’ income were seen when medical practices were acquired in more competitive hospital markets and by nonprofit hospitals, which could reflect differences in bargaining power, the report found.
Dive Insight:
Hospitals and...
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