Hospitals scoop up physician practices, driving prices up

[BumRushDaShow]

Source: msn/Axios

10h


Hospitals are steadily buying small physician practices and, in the process, driving up the price of care, a new National Bureau of Economic Research study shows.

Why it matters: It's the latest evidence of consolidation in health care that's left more than three-quarters of U.S. doctors employed by health systems or corporations.

The pace has quickened in recent years, driven by factors like declining reimbursements for some specialties and expenses like electronic health record systems that have left small independent practices struggling.

But that's brought a decline in competition that raises antitrust concerns.

"These are thousands and thousands of very small transactions and the question is: What do you do about them?" said Yale economist and study co-author Zack Cooper.

"[The Federal Trade Commission] clearly do not have the resources to block every acquisition of three physicians."

By the numbers: Between 2008 and 2016, the researchers found the the share of private physician practices acquired by a hospital in the U.S. rose by 71.5%.

Read more: https://www.msn.com/en-us/money/companies/hospitals-scoop-up-physician-practices-driving-prices-up/ar-AA1IY13V

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Link to National Bureau of Economic Research REPORT - Are Hospital Acquisitions of Physician Practices Anticompetitive?

[FakeNoose]

1. Baby-boomers are hitting retirement age everywhere, even in medical practice

Hand-in-hand with this self-created doctor shortage, it seems that more patient-care responsibilities are assigned to nurses than ever before.

[erronis]

6. I, for one, would rather see a nurse than a doctor for most appointments.

My experiences with RNs, APRNs, NPs, PAs, etc. has generally been excellent. Male or female nurses seem to be more caring and also appear to not be on such a tight time-clock.

[jmbar2]

2. It's not really hospitals, but private equity firms that bought the hospitals doing this

There is so much money sloshing around looking for investments that private equity funds are financializing everything they can find - farm land, veterinary practices, dormitories, nursing homes, etc.

This is unsustainable. They are sucking the life out of everyone and destroying the environment as well.

[Alice B.]

5. I worked for a tech company that served the dental industry

… specifically multi-location practices that were increasingly PE-backed.

The argument for both consolidation and PE was the expense of setting up and operating a practice— there’s a lot of infrastructure cost associated with dentistry (in terms of tools, equipment and materials, which honestly I hadn’t considered until I got that job). Also, no one teaches you to run a business in dental school. There’s a lot of talk about “separating the clinical from the clerical” and “freeing” practitioners up to do what they do.

THAT said, there are stories about meeting financial targets that would stand your hair on end. We have got to do healthcare better in this country and at the end of the day, PE is not a public good culture.

[erronis]

8. And when the PE firms are in control of your health from cradle to grave

their main goal is not to make you healthy but to keep you sick for as long as possible. Get every last dollar out of your retirement account, insurance/Medicare, family savings, etc.

[OldBaldy1701E]

3. Almost as if... GASP...

The institutions that are tasked with our very lives were acting like a business!!

Who'da thunk it?

[ProudMNDemocrat]

4. As well as Dental groups.

A former Dentist of mine in Rochester, now retired, sold his practice to the Park Dental Group. I go twice a year regardless for cleanings and Xrays once every year. I go to the location where I live currently in a Southwest suburb of Minneapolis.

Looks like the Splint/Guard I have had for 12 years may need to be replaced that prevents me from grinding at night due to hairline cracks. That will set me back 4 figures at least. I have the money for that when the time comes. I am set for April for my next visit. Before that if my splint cracks even further.

[Alice B.]

7. Wow! My perio made me a night guard...

That cost me $500 a couple years ago and he just last month replaced for free.i actually put a hole in the old one, in addition to cracking it. He’s going to retire soon, I think, so I’m sweating.

[Miguelito Loveless]

9. They have been doing this for over a decade

Now they are buying dental practices.

[mike_c]

10. another side of this issue

My GP physician told me about ten years ago that the family medical practice he was part of was in dire financial straits. It's a rural practice that experienced a perfect storm of retirements and docs moving to more urban clinics. It was one of the largest primary care offices in our rural county. My doctor had emptied out his retirement funds to keep the practice afloat. They were trying to stay above water long enough to finish negotiations with the rural (for profit) hospital to absorb them into its network of providers. He and everyone else working there ultimately became employees of the hospital, which kept that practice open. A couple years later my second cardiologist's office was likewise saved by the hospital. My first cardiologist simply closed his doors and moved away. Keeping those GP offices open can be a lifeline for rural practices already struggling in our for profit wealth care system.

[BumRushDaShow]

11. Not just rural

I know my cardiologist was in a practice that I believe was a standalone when I first started going there and is now under its 2nd University hospital system. It is located in suburban Philly but in a rim county with both systems located in Philly.

[Initech]

12. This is what happens when we don't regulate anything in this country.