The Cost of Consolidation

Healthcare consolidation has become a prominent trend, reshaping the landscape of medical care in the United States. This move towards larger health systems and private equity (PE)-driven practices has significant implications for both providers and patients, often leaving them to bear the brunt of these industry changes. This blog post delves into the consequences of consolidation for those on the front lines of healthcare: the doctors who prioritize patient care and the patients themselves.

The Strain on Physicians

The pressure of working within the confines of consolidated health systems and PE contracts is palpable for physicians. The drive towards efficiency and cost-effectiveness forces doctors to see more patients faster, compromising the quality of care and the physician-patient relationship.

In stark contrast, doctors who maintain independence in their practice report a markedly different experience. Independent specialty practices offer physicians a degree of autonomy that is increasingly rare in healthcare. This autonomy leads to higher job satisfaction, significantly lower rates of burnout, and a greater sense of fulfillment from their work. The ability to practice medicine according to one's values and priorities, without undue corporate pressure, is highly valued among these doctors. It not only boosts career satisfaction but also helps to maintain a healthier work-life balance, making the profession more sustainable in the long term.

The Patient Predicament

Patients, too, feel the impact of healthcare consolidation, though in different ways. One of the most immediate effects is increased deductibles and out-of-pocket costs. As larger health systems and provider groups gain negotiating power, they often secure higher prices from payers, which ultimately trickle down to patients through increased financial burden.

Beyond the financial implications, consolidation affects the very nature of patient care. The trend toward healthcare monopolies restricts patient choice and access to care, especially for those in geographically or financially vulnerable positions. The closed loop of referrals within a single system can prioritize corporate profit over patient health, compromising the quality of care received. This issue is particularly acute in highly concentrated hospital markets, encompassing the vast majority of metropolitan areas in the U.S. Specialized care and primary care providers are reaching monopoly levels in some regions, with rural areas often hit hardest. This results in decreased access to independent physicians and a corresponding decline in the quality of care for patients with fewer options.

Protecting Your Independence

The sustainability and growth of your practice significantly depend on forging and nurturing key partnerships with payers, healthcare providers, and referring physicians. TRIARQ Health can help you build a custom plan that addresses the specific challenges you're facing within your practice, determine how to solidify your space in the market and find additional opportunities to protect your independence.

After all, you owe it to yourself and your patients. Reach out to one of our consultants today.