Author Interviews, Cost of Health Care, Health Care Systems / 06.09.2019
When Hospitals Own Physician Practices Costs and Services Rise
MedicalResearch.com Interview with:
Vivian Ho, PhD
The James A. Baker III Institute Chair in Health Economics
Director of the Center for Health and Biosciences
Rice's Baker Institute for Public Policy
MedicalResearch.com: What is the background for this study?
Response: In 2003, approximately 29% of U.S. hospitals employed physicians, a number that rose to 42% by 2012. The share of physician practices owned by hospitals rose from 14% in 2012 to 29% in 2016. Economists refer to these relationships between hospitals and physicians as vertical integration, because they represent hospitals exerting more control over physicians as an essential part of inpatient care.
As hospitals gain more control over physicians, they may incentivize delivery of more services but not necessarily higher quality care. When we launched this study, we hypothesized that tighter integration of physicians with hospitals would improve care coordination. (more…)