Hospital-Owned Physician Groups
Health systems and hospitals have aggressively acquired physician groups to secure referral streams. In 2024, approximately 47% of physicians were affiliated with or employed by a hospital system.
Strategic Rationale: By owning the physician group, the hospital ensures that surgeries, imaging, and lab work stay within its facilities.
Economic Consequences: Research indicates that when a hospital acquires a group, prices for the same services often increase because they are billed as "hospital outpatient" services rather than "office-based" services, leading to higher Medicare and commercial insurer spending.
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