An estimated 80% of physicians are now employed by larger entities like hospitals and health systems, driven by factors such as administrative burdens, capital demands, and financial incentives. A key yet underappreciated factor is the shift from fee-for-service to value-based payment models, which require significant resources for small independent practices. The need for investments in technology and regulatory expertise to participate in these models is accelerating corporate consolidation, a trend that policymakers should consider as they promote value-based care.
Author: Abhay Panchal
In 2023, physician owners earned more than employed physicians, but the earnings gap between the two narrowed, according to Medical Economics’ 2024 Physician Report. The report also noted a rise in malpractice premiums, with 45% of physicians reporting an increase, up from 39% the previous year. Data for the report was collected from physicians during the first and second quarters of 2024, covering various aspects of the profession including salaries, productivity, and the state of the profession.
According to Medscape’s 2024 Physicians and RVUs Report, the majority of physicians are dissatisfied with how Relative Value Units (RVUs) are used to determine their performance and compensation. About 60% are unhappy with the financial impact, and 70% believe RVUs are poor productivity measures. The report highlights concerns that the RVU system pressures doctors to increase patient volume, possibly leading to rushed care and unethical practices. Many physicians advocate for alternative models that include qualitative data and better account for time spent on patient care and administrative tasks.
Walgreens is considering selling VillageMD, its $5.2 billion acquisition, due to challenges in generating profit amid economic pressures and changing pharmaceutical demands post-pandemic. Despite earlier efforts to cut costs by closing clinics, the company faces continued financial strain. Walgreens is exploring various options, including a potential sale or restructuring. This reflects a broader trend of difficulties faced by major companies like Walmart and CVS in the healthcare delivery sector, highlighting the complex economics and challenges of primary care ventures.
A recent study found that telehealth-delivered outpatient care for veterans with inflammatory bowel disease (IBD) was not associated with an increased risk of IBD-related hospitalizations. Analyzing data from 534 patients with IBD, the study showed that a higher percentage of televisit-based care (via video or phone) was linked to a slightly reduced likelihood of hospitalization. These findings suggest that telehealth can be an effective and safe option for managing complex chronic conditions like IBD.
A new study shows that the stool-based mSDC2 methylation test may significantly improve the detection of colorectal cancer (CRC) and advanced colorectal neoplasia (ACN). The prospective trial found that the mSDC2 test outperformed traditional screening methods like the fecal immunochemical test (FIT), particularly in early-stage detection. The mSDC2 test also demonstrated cost-effectiveness by reducing the need for colonoscopies. These findings suggest that mSDC2 could enhance CRC screening programs and optimize resource use in community practice.
Torrey Smith, cofounder and CEO of Endiatx, shares insights on Pillbot, the company’s innovative pill-sized robot that navigates inside a patient’s stomach to conduct virtual gastroenterology exams. He also discusses the future potential of this technology in revolutionizing how gastrointestinal conditions are diagnosed and monitored remotely.
A federal judge in Texas has temporarily blocked the Federal Trade Commission’s (FTC) proposed nationwide ban on noncompete clauses. The ruling raises significant implications for the healthcare industry, where noncompete agreements are commonly used to restrict the movement of physicians and other healthcare workers between employers. The decision could impact ongoing efforts to regulate or eliminate noncompetes across various industries, including healthcare.
The article from Stat explores the growing influence of private equity in healthcare, likening it to a “vampire” draining resources from the system. It discusses how private equity firms prioritize profits over patient care, leading to negative consequences such as reduced quality of care, higher costs, and the potential closure of critical services. The piece raises concerns about the long-term impact of this trend on the healthcare industry and patient outcomes.
The CHRONICLE trial from Germany suggests that cold snare endoscopic mucosal resection (EMR) may be safer than hot EMR for large colorectal polyps, with significantly fewer major adverse events. However, this comes with a trade-off: higher rates of polyp recurrence and residual adenoma. While cold EMR shows promise for certain polyp types, especially sessile serrated lesions, further research is needed to refine patient selection and techniques to reduce recurrence rates.