Hospital employment of physicians does not guarantee physician integration, nor a cost savings, reports a recent study by the Center for Studying Health System Change.  For cost containment, and sustained quality, use of contracted hospital physicians may be the better choice.

The recent rise in employment of hospital physicians is a result of a steady decline in Medicare and private insurance payments to physicians and related physician services.  Simultaneously, hospitals have progressively positioned themselves to shore up referral bases and capture admissions according to a recent study.

In a recent published by the Center for Studying Health System Change, A O’Malley, et.al report that “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.”

The report further sites that many hospital Chief Medical Officers across the 12 markets agree with a Lansing respondent stating: “Being able to bring all physicians together with a unified focus on quality, service and access is a challenge.”  Thus employing hospital physicians may result in higher costs, and not necessarily improved quality of care.  Read more of this article about Hospital Physicians.