Hospitals Acquisition of Physician Practices More Than Doubles Since 2005

The number of physician groups acquired by hospitals and health systems across the U.S. has surged since 2005, according to a new report from ECRI Institute.

According to the report, "Risk Managers Tackle Challenges of Hospital-Acquired Physician Practices," the number of physician practices owned by hospitals doubled between 2005 and 2008. By 2008, nearly 50 percent of medical practices were owned and operated by hospitals.  

According to the report, the acquisitions have spiked largely due to the Patient Protection and Affordable Care Act, which requires hospitals to have affiliated physician practices in order to develop accountable care organizations.

"Even in states like California and Texas, where laws prohibiting the 'corporate practice of medicine' do not allow hospitals to employ physicians, hospitals and physician practices are becoming closely tied through contractual arrangements," the report said.

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