While the Chicago medical community is more consolidated than most large cities, the physician segment is likely to contract even more in the future, reports HealthLeaders-InterStudy.
According to a recent "Chicago Market Overview," lower patient volumes, a higher percentage of uninsured patients and tighter access to capital, will likely force consolidation on physicians who are already dealing with stagnant reimbursement from insurers and increased costs for electronic medical records and malpractice insurance.
"While increased consolidation will provide Chicago physicians with additional resources and better leverage with insurers, it's not all positive for the medical community, particularly for those physicians who value greater independence," said Mark Cherry, analyst with Nashville, Tenn.-based HealthLeaders-InterStudy. "Such consolidation can also be a challenge for pharmaceutical sales representatives because health systems are more likely to require them to make appointments to see physicians."
Hospitals, looking for referral streams and added leverage against health plans, are eager to employ physicians. Consolidation gives health systems an increased ability to streamline clinical practices.
One example is Advocate Health Care's recent acquisition of the Midwest Physician Group, a multi-specialty practice that previously sent most of its patients to St. James Hospital.
"The consolidation among physician groups may be the first step in greater consolidation across the Chicago market, as the healthcare sector will be more aligned with two main segments: health systems and health plans," said Cherry. "Look for tensions between these two segments to increase."
Photo obtained from edenpictures via Creative Commons license.