Physician Integration May Increase Costs, Poll Finds | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Physician Integration May Increase Costs, Poll Finds

July 8, 2013
by Gabriel Perna
| Reprints

A new poll conducted by the American College of Physician Executives (ACPE) reveals that the trend of physician integration may drive up costs, rather than decrease it through increased efficiency and streamlining care. Thirty-two percent of the 459 organizations surveyed said the costs of delivering healthcare went up after a hospital or health system bought a group or practice.  

Of those surveyed, 16 percent said costs remained the same, while only 5 percent said costs decreased. Twelve percent were unsure, while the remainder said the situation wasn't applicable. Many said that the cost increase is temporary and will change once they switch from a volume-based reimbursement model to one focused on value and quality of care.

Also, while the cost of healthcare may go up with integration, it does bring benefits. "Our costs and charges are indeed higher with physician employment than without," David McDermott, M.D., the director of emergency services at Mayo Regional Hospital in Dover-Foxcroft, Maine, said in a statement. "However, in rural Maine, if there was not hospital employment of physicians, the physicians would not be here. Costs have risen but we now have access."

In February, Healthcare Informatics looked at how the era of merged hospitals and physician practices is affecting infrastructure and technology. In that piece, it was revealed that integration for CIOs involved overseeing the harmonization of multiple systems and staffs.

Get the latest information on Health IT and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More

Topics

News

Survey: Two-Thirds of Physician Practices Seeking Out Value-Based Care Consulting Firms

Most physician organizations are not prepared for the move to value-based care, and 95 percent CIOs of group practices and large clinics state they do not have the information technology or staff in-house needed to transform value-based care end-to-end, according to a recent Black Book Market Research.

Cumberland Consulting Buys LinkEHR, Provider of Epic Help Desk Services

Cumberland Consulting Group, a healthcare consulting and services firm, has acquired LinkEHR, which provides remote application support, including Epic help desk services.

Population Health Tool that Provides City-Level Data Expands to 500 Cities

A data visualization tool that helps city officials understand the health status of their population, called the City Health Dashboard, has now expanded to 500 of the largest cities in the U.S., enabling local leaders to identify and take action around the most pressing health needs in their cities and communities.

Trump will Nominate Acting VA Secretary Wilkie for Permanent Position

Just a day after the Department of Veterans Affairs (VA) and Cerner inked their $10 billion EHR (electronic health record) deal, President Trump said he would be nominating Acting VA Secretary Robert Wilkie for the permanent position.

ONC Names API Server Showdown Stage 2 Winner

The Office of the National Coordinator for Health Information Technology (ONC) has named 1UpHealth as the Stage 2 winner of the “Secure API Server Showdown” challenge.

EHNAC Developing Trusted Exchange Accreditation Program

To align with the Trusted Exchange Framework and Common Agreement, the Electronic Healthcare Network Accreditation Commission, a nonprofit standards development organization and accrediting body, is working with other organizations to establish a new Trusted Exchange Accreditation Program.