The consolidation of physicians by hospitals, health systems and private equity-backed investment groups is at an all-time high — leaving many providers wondering what the future of independence and autonomy in healthcare looks like.
Easwar Sundaram Jr., MD, president of the Texas Institute for Neurological Disorders in Dallas, joined Becker’s to discuss trends he sees shaping consolidation among physicians.
Editor’s note: Responses have been lightly edited for clarity and length.
Question: What are the biggest trends that you’re observing in physician consolidation?
Dr. Easwar Sundaram: There is a significant trend towards private equity acquisition of practices. They are going after larger practices and then targeting smaller groups as well.
They are able to deliver better long-term growth through capital investments and better insurance contracts!
Hospital employment seems to have slowed down due to antitrust and Stark law restrictions.
Q: What’s missing in the conversation surrounding physician consolidation?
ES: Lost is physician independence and patient satisfaction as financial results take center stage.
This consolidation is wholly a result of cutbacks in physician reimbursement. Hospitals and others pushed for lower physician reimbursement and now are seeing large PE-backed physician groups fighting hospitals on their own turf with ASC and office-based procedures shutting off the hospital outpatient revenue!
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