Are hospitals prematurely divesting their employed physician groups?

This article reviews the original strategic decisions for hospitals developing employed physician groups and assesses whether the strategic reasons are still valid. It then discusses the factors that have the greatest impact on the profitability of these groups. A number of hospitals have found that the original strategic reasons for employing physicians still apply, and they have taken a multifaceted approach, developing expense, reimbursement and other key strategies to improve profitability and preserve their initial objectives.