6 Top Reasons Physicians Move From Private Practice to Hospital Employment

Physician employment and quasi-employment transactions were among the most frequent types of hospital-physician integration activities in 2011 and 2012, according to the HealthCare Appraisers 2013 report.

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These arrangements often appeal to physicians because of changing market dynamics and personal preferences. Here are some of the reasons physicians most frequently give for moving from private practice to an employment setting, according to the report.

1. Declining reimbursement rates and decreased bargaining power with commercial payers

2. Lifestyle considerations

3. Reports of positive benefits from other physicians who have transitioned to employment

4. Seeking an exit strategy, for practices with more senior founders

5. The perception that employment offers the opportunity to “lock in” compensation at existing levels

6. Uncertainty about future reimbursement and delivery models enacted by the Patient Protection and Affordable Care Act.

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