Hospitals Sweeten Deals to Attract Physicians

November 18, 2010 – In The News
Pittsburgh Business Times

In an attempt to build their physician networks as the number of private practices decreases, hospitals are now in the business of acquiring physician practices. According to Edward Kabala, recruiting doctors’ spouses or partners is a growing trend and among the nonmonetary incentives being offered.

“Well-compensated specialists or real country doctors are going to be the only ones left standing,” said Kabala. “They don’t have the same autonomy, but most of them never had it, so they don’t know what they’re missing.” Kabala notes one downside is an increase in employed physicians may result in an inflated overall cost of health care as hospitals maximize revenue through such things as “facility fees,” premium charges in excess of 15 percent when procedures are performed within a hospital complex rather than private office.