Physician integration may not cut costs, study finds

When hospitals began acquiring physician practices, many believed that integrating physicians under one roof would reduce costs by increasing efficiency and streamlining patient care. But the move toward physician integration may be actually driving up costs, at least initially, according to an online poll conducted by the American College of Physician Executives (ACPE).

Of those who said the question was applicable to their organization, most (32%) said costs went up after a hospital or health system bought a group or practice. About 16% said costs remained the same, while only 5% said costs decreased. Another 12% were unsure. However, although costs may increase, integration can bring other benefits, according to many respondents’ comments. 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.

Source: PR Newswire, ACPE