70% of Doctors are Now Employed by Hospitals, Private Equity Firms and Insurance Companies.
Conversely, Only 30% of Doctors are Independent, Which is a Major Drop from 20 Years Ago when 57% of Doctors Were Independent.
Breakdown of the 70%:
--50% of Doctors are Employed by Hospital Systems
--20% of Doctors are Employed by Private Equity Firms or Insurance Companies.
More Specifically, for Primary Care Physicians:
--43% of Internal Medicine Doctors are Employed
--57% of Family Practice Doctors are Employed
Hospital Systems Want to Employ Primary Care Physicians (PCPs) So They Can Drive PCP Referrals to Their Own Specialists, Who Will Then Order a lot of Tests and Procedures within Their Facilities.
These PCP Referrals Are Becoming MORE Important Because Referrals Are Done Much More Frequently Today...
In 1999, 4.8% of PCP Visits Resulted in a Referral.
In 2018, 18% of PCP Visits Resulted in a Referral.
It Went from 1 in 20 Visits to 1 in 5!
Employers and Employees Must Understand that Large Organizations--Hospitals and Private Equity Firms--Influence the MAJORITY of Doctors to Maximize Fee-for-Service Revenue. It Is Now the Norm.
Sources:
https://www.beckersasc.com/asc-transactions-and-valuation-issues/70-of-physicians-are-now-employed-by-hospitals-or-corporations.html
https://www.beckershospitalreview.com/rankings-and-ratings/50-largest-u-s-medical-group-parents.html
https://www.ama-assn.org/system/files/2019-07/prp-fewer-owners-benchmark-survey-2018.pdf
https://www.ajmc.com/view/outpatient-referral-rates-in-family-medicine
https://www.healthcarefinancenews.com/news/doctors-leaving-private-practice-droves-joining-hospitals-report-says
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