Hospital-Employed Physicians: Same Doctor Visit, Double the Cost

August 31, 2012
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Hospitals are acquiring physician practices and integrating them into hospital services. The stated goal is to improve care coordination, eliminate duplication of services and boost efficiency. However, Medicare and private insurers pay more for hospital services than the same service if done outside the hospital, such as in a doctor’s office. According to the Wall Street Journal (gated):

Hospitals are acquiring physician practices and integrating them into hospital services. The stated goal is to improve care coordination, eliminate duplication of services and boost efficiency. However, Medicare and private insurers pay more for hospital services than the same service if done outside the hospital, such as in a doctor’s office. According to the Wall Street Journal (gated):

After David Hubbard underwent a routine echocardiogram at his cardiologist’s office last year, he was surprised to learn that the heart scan cost his insurer $1,605. That was more than four times the $373 it paid when the 61-year old optometrist from Reno, Nev., had the same procedure at the same office just six months earlier.