About Me

My photo
Master of Science, Healthcare Administration. Certified Healthcare Business Consultant. Certified Business Appraiser. Certified Valuation Analyst.

Wednesday, July 28, 2010

LA Times Article - ACO's, Physician-Hospital Practice Sales, Employment, Alliances

An article in the LA Times discussing Accountable Care Organizations and Physician-Hospital Practice Sales, employment arrangement, and alliances. The article touches on many points of a multifaceted phenomenon without going into additional depth. It's an interesting read for some basic observations of many issues pertaining to healthcare mergers, acquisitions, and alliances. Below I've included some key passages from the article. The last quote I've highlighted is important to note. The changes occurring are undeniable but the level of fear seems to drive many into a frenzy. There will be many more mergers and consolidations among medical practices, hospitals, and health systems, but whether these deals are driven by logic or fear will depend on how changes in the greater healthcare environment will actually play out.

"Three of San Antonio's hospital systems are competing to form alliances with local doctors who are giving up their private fee-for-service practices in exchange for paid positions on a hospital's team. Healthcare experts have long argued that such a unified approach to medical care offers the best hope for improving quality and saving money. While a few institutions such as the Mayo Clinic and Kaiser Permanente have thrived doing this, the entrenched, competing interests of providers were widely seen as a barrier to nationwide change. It is possible the current rush will fail to reproduce the best models or their results. Further consolidation in the $2.5-trillion healthcare industry might drive up costs for everyone. It could also reprise problems from the 1990s, when HMOs were criticized for restricting patient choice and access to care...

...But some experts and providers see the new courtship dances as a surprisingly hopeful sign. The healthcare debate may have helped spark doctors, hospitals and others to rethink what they do, raising the prospect of better outcomes for millions of Americans. Not everyone is interested in these overtures. Dr. Manuel M. Quinones Jr., who dissolved a partnership with Santa Rosa several years ago, said physicians should be wary. "When a hospital controls the lion's share, it will always be first in line to get the money," he said. But like Carrier, many doctors in San Antonio see a changing world in which it's increasingly difficult to practice on their own. "It's scary," said Dr. A. Charles Rabinowitz, a cardiologist who has watched many colleagues sell their practices. "There is a lot of paranoia out there."

No comments: