Not quite the Midas touch


Profitability of physician practices tends to drop after acquisition by a hospital or integrated health care organization. The purchaser almost always loses money on the practice during the first year of ownership, with one estimate suggesting that losses between $50,000 and $100,000 per physician per year are common and that losses of $200,000 per physician are not unheard-of.

While selling a practice guarantees the physician a steady income — often higher than what the physician averaged when solo — financial losses can lead a buyer to implement stringent productivity measures. A model by Voluntary Hospitals of America demonstrates the effect of practice acquisitions, based on a typical solo practice with annual net revenue of $300,000.

SOURCE: SETTING FOUNDATIONS FOR THE MILLENNIUM, VOLUNTARY HOSPITALS OF AMERICA INC., IRVING, TEXAS, AND DELOITTE & TOUCHE, DETROIT, 1998

Career Opportunities

HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

Apply via email to jfedder1@hfhs.org or online at http://p.rfer.us/HENRYFORDlXqAJA

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