The New Delivery Nexus: The Danger of the Hospital Fully Owned and Operated Physician

On December 12 of last year, Ann Mathews wrote a brilliant piece in the Wall Street Journal about the future of medical care in The United States. It is an extremely informative study and provides the reader with a very fine 50,000-foot view of the current condition of its subject. 

What she did not mention, or truly highlight, is the threatening trend that is taking place with ever increasing rapidity, of hospital conglomerates, both For Profit and Not For Profit, purchasing medical practices and individual physician practices. It is currently estimated that 62% of not-for-profit and for-profit hospitals have either purchased or own physician practices. 

With this in mind, government-controlled healthcare that includes the large Healthcare Combines of which Ms. Mathews wrote has far-reaching, devastating effects. It not only presents a fiscal vulnerability to the Medicare program but what she did not detail may be the most significant restriction imposed upon personal choice by this rampant purchasing of physician practices- pricing. 

The de facto effect of this combination of hospital and physician, the delivery nexus, will be to command healthcare pricing, through control of large networks of physicians and hospitals putting significant medical services in a geographic area in the hands of one entity. This amalgamation will destroy the traditional checks and balances system of price control that currently exists between physician, hospital and insurance company by putting substantive price leverage in the hands of this nexus. The net effect will drive healthcare costs up, bending the curve in the wrong direction. 

The most powerful weapon driving healthcare cost is the physician’s pen, which controls nearly $2.5 trillion. Should this weapon become co-opted by these large institutions, the resultant ownership of the place of production (the hospital), the workers (doctors) and thus almost all of the non-administrative revenue stream will be disproportionately placed in selective hands creating marketplace-pricing monopolies. The effect will be to further subordinate the individual in the value chain and hamper or remove the patient’s freedom to choose. 

Most important of all, it will undermine the physician’s independence to make medical decisions free of financial considerations. What we have done is come full circle, but this time, the resultant HMO will be bigger, more powerful and ever more restrictive and time consuming. 

Be careful for that which you ask. You mat indeed get it, and get it good!

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11 Responses to “The New Delivery Nexus: The Danger of the Hospital Fully Owned and Operated Physician”

  1. hehe great ! I really love that article :)

    • Dr. Brooks says:

      Thanks It is a looming problem and you really need to be attentive to this. There will be deals made and laws bent. As always, follow the money!

      As you enjoy the blogs, please tell your friends about the radio site and the blog site as well. Would you also do us the honor of asking your friends (as well as you) to subscribe to the blogs by clicking the RSS logo on the front page of the website? It would be greatly appreciated and know that I will always endeavor to produce incisive and timely pieces on issues that affect the Nation’s Health!

      We would appreciate you downloading the podcasts if you missed the program and also your liking us on Facebook @ Health of the Nation Remember, you can also can catch our broadcasts live on Sundays at 5PM to 6 PM Central on 570 AM, KLIF by going to the website and clicking on the Streaming bar.

      Thank you again for the time you took to read the blog and to comment.

      Mitchell Brooks, M.D.

  2. Sue says:

    Nice to read your blog

    • Dr. Brooks says:

      Not famous but diligent. Thank you for your kind words and support.

      As you enjoy the blogs, please tell you friends about the site and the blog site as well and would you do us the honor of subscribing to the blogs by clicking the RSS logo on the front page of the website? It would be greatly appreciated and know that I will always endeavor to produce incisive and timely pieces on issues that affect the Nation’s Health!

      We would so appreciate your liking us on Facebook @ Health of the Nation and you also can
      catch our broadcasts live on Sundays at 5PM Central on KLIF by going to the website and clicking on the Streaming bar.

      Thank you again for the time you took to read the blog and to comment.

      Mitchell Brooks, M.D.

  3. Poster Stand says:

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    • Dr. Brooks says:

      Thank you for taking the time to read the blog and for commenting. I so appreciate it.

      As you enjoy the blogs, please tell more of your friends about the radio site and especially the blog site as well. Would you also do us the honor of asking your friends (as well as you) to subscribe to the blogs by clicking the RSS logo on the front page of the website? It would be greatly appreciated and know that I will always endeavor to produce incisive and timely pieces on issues that affect the Nation’s Health!

      We would appreciate you downloading the podcasts if you missed the program and also your liking us on Facebook @ Health of the Nation Remember, you can also can catch our broadcasts live on Sundays at 5PM to 6 PM Central on 570 AM, KLIF by going to the website and clicking on the Streaming bar.

      Thank you again for the time you took to read the blog and to comment.

      Mitchell Brooks, M.D.

  4. I really appreciate this post. I’ve been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thx again!

    • Dr. Brooks says:

      Thank you; it’s nice to assist people.

      As you enjoy the blogs, please tell more of your friends about the radio site and especially the blog site as well. Would you also do us the honor of asking your friends (as well as you) to subscribe to the blogs by clicking the RSS logo on the front page of the website? It would be greatly appreciated and know that I will always endeavor to produce incisive and timely pieces on issues that affect the Nation’s Health!

      We would appreciate you downloading the podcasts if you missed the program and also your liking us on Facebook @ Health of the Nation Remember, you can also can catch our broadcasts live on Sundays at 5PM to 6 PM Central on 570 AM, KLIF by going to the website and clicking on the Streaming bar.

      Thank you again for the time you took to read the blog and to comment.

      Mitchell Brooks, M.D.

  5. Hello, I think your blog might be having browser compatibility issues. When I look at your blog site in Firefox, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, amazing blog!

  6. Outstanding post but I was wanting to know if you could write a litte more on this topic? I’d be very grateful if you could elaborate a little bit further. Thank you!

    • Dr. Brooks says:

      Thanks for your reply.

      The issue is not difficult and it is something about which I will write in the future as more information becomes available. What really is at stake here is the independence of the physician and the ability to be a free advocate for the patient. Once a paycheck comes from the hospital and not from the patient, by human nature, the patient advocacy must eventually be subsumed by the author of the check; in this case the hospital

      Be careful what you have asked for- you’re really going to get it!

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