Physician responses to the marketplace: group practices and hospital alliances

Congress is now debating legislation that would give independent physicians the right to bargain collectively with managed care organizations. Proponents argue that this legislation is needed to counterbalance the market power of managed care organizations; opponents argue that physicians can already gain leverage and negotiating strength by forming group practices or through joint ventures with hospitals. This debate has brought attention to the competitive nature of the health care marketplace, and physician responses to managed care. This Issue Brief examines how physicians are reorganizing their practices to meet the demands of the competitive marketplace.