Physician employment strides and setbacks
Physician employment has gained considerable ground over the past decade. In 2014, hospitals employed almost 123,000 physicians and dentists—a 76% rise from the 2003 rate, according to the American Hospital Association. This trend carries major challenges and opportunities for healthcare organizations and the practitioners in their employ, according to two articles released earlier this week.
In 2012, median losses on hospital-owned multispecialty practices amounted to $183,000 per physician, according to an article published Monday in Hospitals & Health Networks (H&HN). This number tapered to $128,000 per physician last year. Next, hospitals will need to harness bundled payments to further reduce physician costs, according to the article.
“As value-based incentive payments grow as a percentage of total hospital payment and as the opportunity to reduce episode costs becomes more important, health systems will have to be much more systematic about improving both clinical practice norms and the patient experience,” the H&HN article authors write. “The encouraging progress in reducing physician practice losses is only the first step in a journey toward higher-functioning medical groups that truly add value for patients and the community.”
Physicians are likewise at a crossroads. In a Sunday blog post for Diagnostic Imaging, Rebecca Fox, MD, reflects on her first-hand experiences with employment and private practice. According to Fox, pros of employment include a steady salary, built-in managerial support, and financial backing that helps burgeoning practices get off the ground, while cons include losses in autonomy, decision-making status, and flexibility to explore new medical interests.