The authors argue that the marginal cost of hiring physicians decreases as employment grows if hospitals use strategies such as standardizing surgical supplies and choosing cost-effective medical devices.
They suggest an initial financial loss from employing physicians may be offset by increased efficiencies and better patient experiences. Over time, employing physicians will improve productivity and outcomes and may drive prices lower, according to the report.
Read the New England Journal of Medicine report on physician employment.
Read more coverage on physician integration:
– Bill to Overturn Ban on Physician Employment at Rural Hospitals Moves to Texas Senate
– 5 Opportunities for Physicians and Hospitals to Realign in Preparation for ACOs
– Powell Valley Healthcare CEO Working to Bring On More Specialists
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