Many newly created physician-hospital organizations will not survive because of a lack of vision, insufficient capital, poor marketing plans or general competition from managed-care organizations, a new study asserts.
In a survey of 156 hospital organizations for the American Association of Physician-Hospital Organizations, Glen Allen, Va., 67%, or 104, said they either own or sponsor a PHO, the association said. Because more than 80% of the 104 PHOs surveyed have fewer than 25,000 enrollees, the association predicted many will consolidate, join a network or merge with larger groups.
Nearly two-thirds of the PHOs are owned jointly by physicians and hospitals, and most PHOs are located in urban areas with populations greater than 602,000.
The survey was conducted by the American Association of Physician-Hospital Organizations and Tyler & Co., an Atlanta-based healthcare recruiting firm.