MODERN HEALTHCARE's March 31 article "Reining in docs" (p. 41) provides relevant information about problems confronting physician practice management firms, but the complete picture was not revealed.
I've reviewed the full Salomon Brothers report referred to in the article, which provides a comprehensive thesis on the state of the PPM industry. I believe the following excerpts from the report help tell more of the story:
"We are excited about the prospects of the U.S. physician services management industry. . . . Physician-led delivery networks, if properly empowered, have the ability to take significant costs out of the current delivery system."
"We believe this industry, through market structure shifts into public equity-based ownership, will demonstrate 25% annual revenue growth and the potential for 15% to 25% annual earnings-per-share growth for the next five years."
The resources and support of a PPM can give physicians the ability to get away from ever-increasing administrative workloads and focus on improving clinical outcomes, efficiency and patient-satisfaction levels.
TERRENCE L. BAUER
Pediatric Physician Alliance, Atlanta