CostReduction, Networks, Providers, Reimbursement

Hospital Employment Of Physicians In Massachusetts Is Associated With Inappropriate Diagnostic Imaging

Gary J. Young, E. David Zepeda, Stephen Flaherty, Ngoc Thai Health Affairs May 2021

Conclusion

As the effects of hospital-physician integration on patient care become better understood, policy makers may consider using payment and regulatory mechanisms to either promote or impede the shift in physician services from physician-owned to hospital-based practices. Most recently, the Centers for Medicare and Medicaid Services revised its reimbursement approach for physician services to reduce the long-standing payment differential favoring hospital outpatient settings over physician-owned practices, which itself has provided an incentive for hospitals to invest in physician services.17 Additional policy initiatives of this type may occur in the future as the debate over hospital employment of physicians moves forward. Accordingly, we are hopeful that additional research will be undertaken to assess the advantages and disadvantages of physician employment for the US health care system.

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