Hospitals purchase unprofitable practices
Hospitals are more likely than medical groups and physician management companies to acquire unprofitable physician practices, according to a recent survey released in "The 1997-1998 Physician Practice Acquisition Resource Book."
Hospitals are more likely than medical groups and physician management companies to acquire unprofitable physician practices, according to a recent survey released in "The 1997-1998 Physician Practice Acquisition Resource Book."
The survey, conducted by The Center for Health Care Industry Performance Studies, draws its conclusions from 460 physician practice acquisitions made between 1994 and 1996. It represents more than 1,200 physicians from numerous specialties.
According to William Cleverly, Ph.D., who co-wrote the book with Patrick Knott and Carson Dye, there are several reasons why hospitals may acquire unprofitable physician practices.
"First, hospitals tend to pay higher salaries to employed physicians than other firms do, and second, hospital management may believe there are substantial opportunities to raise practice revenues or decrease costs to make the practices more profitable," Cleverly said.
But a third reason, according to the authors, may be the substantial opportunities for additional referral revenue for the hospital. "This strategy is, of course, illegal," Cleverly said.
The survey also uncovered a misperception about physician practice acquisitions. While it is generally assumed that tangible assets - accounts receivable, property and equipment - make up only a small percentage of a total purchase price, survey results indicated that the percentage is actually much higher than previously believed. PR
Addressing Disparities in Psoriasis Trials: Takeda's Strategies for Inclusivity in Clinical Research
April 14th 2025LaShell Robinson, Head of Global Feasibility and Trial Equity at Takeda, speaks about the company's strategies to engage patients in underrepresented populations in its phase III psoriasis trials.
Beyond the Prescription: Pharma's Role in Digital Health Conversations
April 1st 2025Join us for an insightful conversation with Jennifer Harakal, Head of Regulatory Affairs at Canopy Life Sciences, as we unpack the evolving intersection of social media and healthcare decisions. Discover how pharmaceutical companies can navigate regulatory challenges while meaningfully engaging with consumers in digital spaces. Jennifer shares expert strategies for responsible marketing, working with influencers, and creating educational content that bridges the gap between patients and healthcare providers. A must-listen for pharma marketers looking to build trust and compliance in today's social media landscape.
FDA Approves Nipocalimab for the Treatment of Generalized Myasthenia Gravis
April 30th 2025Approval is based on results from the pivotal Vivacity-MG3 trial in which IMAAVY (nipocalimab-aahu) demonstrated superior disease control throughout 24 weeks when compared to placebo plus standard of care.
