Hospital-Employed Physicians Drive Up Costs
Written by Editor   
Wednesday, September 03, 2014 01:36 PM

The attorneys general (AGs) of 16 states warn that hospital employment of physicians, which is considered in many quarters to be the inevitable fate of medical practice, is driving up healthcare costs without necessarily improving the quality of care.

The AGs sounded this alarm last month in a federal appellate case in which the Federal Trade Commission is seeking to prevent St. Luke's Health System in Boise, Idaho, from merging with Saltzer Medical Group in nearby Nampa on antitrust grounds.

The AGs side with the government, as do America's Health Insurance Plans, a trade association. The case spotlights the economics of hospitals employing physicians and the challenges of implementing the Affordable Care Act.