Survey: Less than 33% of physicians to be independent by 2013
U.S. community-based physicians continue to sell their private practices and seek employment with healthcare systems, according to a survey from Accenture.
The rate of independent physicians employed by health systems will grow by an annual 5 percent over three years, according to the New York City-based consulting company. By 2013, less than one-third of physicians are expected to remain truly independent, down from 57 percent in 2000 and 43 percent in 2009, stated the report titled “Clinical Transformation: Dramatic Changes as Physician Employment Grows."
The report consisted of in-person interviews and phone interviews with C-suite hospital executives and industry stakeholders. The interviews occurred between September and November 2010; the analysis was completed earlier this year.
"To stay competitive in this transformed landscape, health ecosystem stakeholders—medical device makers, healthcare IT developers, pharmaceutical companies—will see their target customers shift from individual, self-employed physicians or doctor-owned practices toward hospitals and health systems," the report stated. "Selling to these larger corporate purchasers will require new strategies for segmenting customers and for marketing and distributing offerings."
The trend is expected to continue, driven by ongoing forces. For physicians, employment by health systems offers advantages including:
"Meanwhile, for hospitals worried about physician shortages, employing doctors can help lock in expertise and boost patient volumes and revenues in high-growth service lines, including cardiovascular care, orthopedics, cancer care and radiology," the report noted.
Accenture’s analysis suggests that complexities in the changing healthcare employment landscape may result in:
The rate of independent physicians employed by health systems will grow by an annual 5 percent over three years, according to the New York City-based consulting company. By 2013, less than one-third of physicians are expected to remain truly independent, down from 57 percent in 2000 and 43 percent in 2009, stated the report titled “Clinical Transformation: Dramatic Changes as Physician Employment Grows."
The report consisted of in-person interviews and phone interviews with C-suite hospital executives and industry stakeholders. The interviews occurred between September and November 2010; the analysis was completed earlier this year.
"To stay competitive in this transformed landscape, health ecosystem stakeholders—medical device makers, healthcare IT developers, pharmaceutical companies—will see their target customers shift from individual, self-employed physicians or doctor-owned practices toward hospitals and health systems," the report stated. "Selling to these larger corporate purchasers will require new strategies for segmenting customers and for marketing and distributing offerings."
The trend is expected to continue, driven by ongoing forces. For physicians, employment by health systems offers advantages including:
- Relief from administrative responsibilities;
- Greater access to leading-edge healthcare IT tools, facilities and equipment;
- A more manageable work week (typically sought by recent trainees); and
- Stability in a business environment made uncertain by developments such as payment reforms.
"Meanwhile, for hospitals worried about physician shortages, employing doctors can help lock in expertise and boost patient volumes and revenues in high-growth service lines, including cardiovascular care, orthopedics, cancer care and radiology," the report noted.
Accenture’s analysis suggests that complexities in the changing healthcare employment landscape may result in:
- Hospitals enhancing expertise and boosting patient volumes and revenues in high-growth service lines;
- Companies serving diverse markets will shift their sales force structure from national to regional;
- Payors encountering greater negotiating leverage, which must be factored into future business strategies, as physicians increasingly associate with larger groups and healthcare systems; and
- More challenges for companies working to reach the physician market.