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Revisiting physician employment
Trustee : the Journal for Hospital Governing Boards
|September 9, 2008
Insights
Hospital physician employment is rising again, but lessons learned from the 1990s financial losses are preventing past mistakes. Healthcare leaders are cautiously optimistic about current physician employment models.
Area of Science:
- Healthcare Management
- Health Economics
- Hospital Administration
Background:
- Hospitals previously experienced significant financial losses when employing large numbers of physicians in the 1990s.
- This historical financial strain has created apprehension regarding current physician employment trends.
Purpose of the Study:
- To analyze the current landscape of hospital physician employment.
- To identify strategies mitigating the financial risks observed in previous employment models.
Main Methods:
- Review of historical financial data from hospital physician employment in the 1990s.
- Analysis of current hospital employment practices and financial performance indicators.
Main Results:
- Hospitals are implementing new strategies to manage physician employment costs effectively.
- Current physician employment models show improved financial viability compared to the 1990s.
Conclusions:
- Modern hospital physician employment strategies are designed to avoid the pitfalls of the past.
- Financial risks associated with physician employment are being successfully managed by contemporary healthcare organizations.
Abstract:
All too many trustees remember the last time hospitals employed large numbers of physicians--and the resulting large financial losses they absorbed. Now some hospitals are employing physicians without fearing a repeat of the mistakes from the 1990s.
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