Independent Practice

Physician practices started the year off with a 6% revenue increase, but expenses also grew, according to a new report from Syntellis.

Two physician-owned hospitals have announced plans to close campuses or end services in the last few months, citing labor costs, inflation and case volume declines. 

Revenue and expense data from the last year could point to a need for to reconsider the traditional physician employment model, according to Kaufman Hall's "Physician Flash Report for 2023"

Chris Roy, business development executive at Hutchinson, Kan.-based The Summit, joined Becker's to discuss the payer behavior challenging his physician-owned surgical hospital. 

Here are five key notes on the state of physician-owned hospitals:

As healthcare consolidates, it is becoming increasingly difficult for some physicians to maintain ownership of facilities and access economies of scale. 

Medical group revenue per physician jumped 16.7% in 2023 but expenses are also on the rise, according to the AMGA Medical Group Operations and Finance Survey.

Hospitals nationwide have begun to cut service lines in an effort to save money or address staffing concerns. This phenomenon opens the door for independent practices to show why they too are a necessity in their communities.

As inflation has soared and accessing economies of scale becomes more difficult, physicians are flocking to employed models. 

In a world where it is becoming increasingly difficult to practice privately, physicians still choose to continue down the path they believe is best for them.