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White House: Health Reform Will Promote Hospital Employment of Physicians

26 August 2010

‘Economic Forces’ Prompted by Health Reform Will Cause Smaller Groups to Merge for Greater Efficiencies and Purchasing Power

White House healthcare officials published an article in the Annals of Internal Medicine this week, outlining the “opportunities and challenges” of the new Patient Care Act (PPACA).

The article provides an overview of the many ways medical practice is expected to change, and advises physicians to “embrace these changes” to insure maximum success in their medical practice, and the highest quality of care for their patients.

The authors include Nancy-Ann M. DeParle, JD, Counselor to the President and Director of the White House Office of Health Reform, and Dr. Ezekiel Emanuel, Special Advisor on Health Policy, Office of Management and Budget.

Among the accomplishments of health reform (according to the article) are:

Another by-product of health reform, according to the article is that economic forces will cause physicians to “organize themselves into increasing larger groups.”  The authors acknowledge that smaller practices will not be able to afford to “make the necessary investments in information technology and management skills.”

Steve Marsh, managing partner of The Medicus Firm physician search notes “Hospital employment is already a growing trend. Apparently, based on this article, the trend will be intensified by the new health reform laws.”  Marsh adds that physicians in smaller groups need not panic. “Keep in mind that health reform is being implemented gradually over ten years or more.  Therefore, physicians may not want to make any sudden, drastic career changes solely based on this report.”

The authors also briefly address the issue of physician reimbursement, and the lack of a permanent “doc fix” for the “Medicare Meltdown” also known as the sustainable growth rate formula (SGR):

“The uncertainty surrounding the sustainable growth rate policy is a distraction and potentially a barrier for some physicians to embrace the Affordable Care Act,” the article states.

Certainly, physicians who are currently practicing medicine see the large looming pay cut as much more than a “distraction”. For many physicians, the cut could represent a complete disruption in their medical careers, if it is allowed to take effect.

The article winds down with a call to action, for physicians to “embrace the changes” and “accept the challenges”.  The authors even imply that physicians have a “moral” obligation to do so, because the PPACA provides better quality of care for their patients, and physicians are morally obligated to provide the highest quality of care possible.

Reactions to the report in the Annals of Internal Medicine were strong. Many readers who left comments online indicated that they don’t agree with the message of the article, and/or they do not believe that the PPACA and its effects were accurately represented.

Many readers of the article may wonder why government health care officials feel that it was even necessary to publish this report. The article certainly has a “sales pitch” feel to it, as if the White House is realizing that there is a lot of discontent and disagreement among the physician workforce about the new laws, and is still trying to convince physicians that the PPACA will be good for them and their patients.

Finally, readers of the abstract are then directed to participate in a poll: “Which objectives will the Affordable Care Act succeed in achieving?”.  The Medicus Firm conducted a very similar survey earlier this year, as part of our annual physician compensation survey.  We asked physicians to rate the new law (PPACA) on each of the objectives and predict how effective they expect the new health reform laws to be in achieving each of those objectives.  We reported the results here on DocHunterDiary.

What do you think of the White House health officials’ appeal to physicians to “embrace” the changes and “accept the challenges” of the health reform act?  Feel free to share your thoughts below.


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