News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel

News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel
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Graduating Physicians Opt for Jobs in Hospital-Owned Practices over Private Practices

Trend could prove unfavorable to independent clinical laboratory companies

More physicians now join hospital-owned practices than any other type of practice. That’s one conclusion reported in a survey conducted by the Medical Group Management Association (MGMA). This is a trend that may have negative implications for independent clinical laboratory companies and pathology groups that provide medical laboratory testing to office-based physicians.

In the MGMA survey, higher compensation packages offered by hospital-owned practices were cited as one reason why growing numbers of physicians choose a hospital-owned practice. The survey also determined that physicians believe they will have a better chance for reimbursements in hospital-owned practice settings, compared to other practice models.

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Hospitals on Buying Spree Snap Up Physician Practices

Doctors Opt For More Resources, Fewer Administrative Burdens Over Independence


There’s an interesting trend which has significant implications for pathologists and the clinical laboratory testing industry over the long term. For a variety of reasons, growing numbers of physicians are selling their medical practices to hospitals and health systems. This is creating a noticeable reduction in the number of private practices in the United States.

As commercial laboratory executives know, when a medical group practice is purchased by a hospital or health system, the clinical laboratory test referrals are redirected to the laboratory outreach program of the new owners. That means a reduction in the number of potential laboratory test clients in that regional market.

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Ranking the Nation’s 20 Largest Doctor Groups Reveals Surprises

Nine of the 10 largest medical groups are located on the East and West coasts

When it comes to the list of the 20 largest physicians groups in the United States, Kaiser Permanente is at the top. With 7,000 physicians, Permanente Medical Group in Northern California is the nation’s largest. Number two is Southern California Permanente Medical Group, based in Pasadena, California. At number 20 is the University of Indiana School of Medicine with 1,481 physicians.

This list was prepared by the Medical Group Management Association  (MGMA) and published in Modern Healthcare . One interesting fact is that all but one of the 10 largest medical practices are located on the east or west coast. Overall, six of the top 20 medical groups are located in the Midwest, one in Texas, and the rest in coastal cities.

There are 51, 280 physicians practicing in the nation’s 20 largest medical groups. This represents about 6.4% of the 800,000 physicians licensed in the United States – P. Kirk

20 Largest Medical Groups:  

RANK – GROUP # OF DOCTORS CITY
1. Permanente Medical Group 7,000 Oakland
2. Southern California Permanente Medical Group 6,400 Pasadena
3. Bellevue Hospital Center 4,000 New York
4. University of Medicine & Dentistry of Newark 2,816 Newark
5. Albert Einstein College of Medicine of Yeshiva Univ. 2,775 New York
6. University of Pittsburgh Medical Center 2,700 Pittsburgh
7. Johns Hopkins University 2,694 Baltimore
8. Columbia University Medical Center 2,189 New York
9. David Geffen School of Medicine at UCLA 2,000 Los Angeles
10. Mayo Clinic 1,995 Rochester
11. University of Washington Medicine 1,830 Seattle
12. Northeastern Ohio Univ. Colleges of Med & Pharmacy 1,800 Rootstown
13. University of Michigan Health System 1,746 Ann Arbor
14. Massachusetts General Hospital 1,746 Boston
15. University of Pennsylvania Medicine 1,700 Philadelphia
16. Baylor College of Medicine 1,607 Houston
17. University of Illinois Medical Center at Chicago 1,604 Chicago
18. Northwestern Memorial Hospital 1,600 Chicago
19. Winthrop University Hospital 1,525 Mineola
20. Indiana University School of Medicine 1,481 Indianapolis
Total all physicians from all groups: 51,208  
Source: MGMA, Englewood, Colorado    
     

Related Information:

Largest medical group practices

Is Integration in Large Medical Groups Associated With Quality? (PDF)

Benefits of and Barriers to Large Medical Group Practice in the United States (PDF)

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