Consolidation and capitation are major elements driving change within medical group practices, according to new data. The number of practices dropped 2.2% to 6,753 in 1996 from 6,908 the prior year, but the number of physicians per practice grew in practices of all sizes. The consolidation was most noticeable in those groups with more than 10 full-time equivalent physicians.
Meanwhile, managed care marched on. Capitation revenues grew, but as they did, groups' operating costs also increased significantly. Physician interest in ownership of HMOs or PPOs rose, and the link between productivity and physician compensation intensified.
These findings are reported in the Medical Group Practice Digest, part of the Hoechst Marion Roussel Managed Care Digest Series, 1997.
For copies of the report, call 800-529-9615.
See printed publication for charts on: