Financial implications of moving to a physician employment model

Hospital employment of physicians can lead to better quality, coordination of care, and increased efficiency. The employment model is likely to be better suited for healthcare reforms that require a great degree of physician-hospital integration. A sophisticated analysis of the employment model must take into consideration physician-related costs and payments, access, competitive positioning, and alignment of incentives. Analysis of the physician employment should be performed in the context of all the strategic options available to a hospital.