Independent physician practices deliver lower-cost care: Study highlights need for site-neutral payment reform (Medical Economics)

Independent physician practices are delivering significantly lower-cost care compared to hospital-owned settings, according to a new study in the Journal of Market Access & Health Policy. Researchers analyzing cardiology, gastroenterology, orthopedics, and urology practices found that hospital outpatient departments (HOPDs) remain the most expensive sites of care, while independent and private-equity–affiliated practices provide substantially lower-cost options. Medicare reimbursements to HOPDs reached as much as 861% of office or ASC payments, while commercial insurers paid up to 1,346% more—differences that experts warn are driving consolidation, inflating costs, and threatening the survival of independent practices. The findings add urgency to calls for site-neutral payment reform to preserve affordable, high-quality care and ensure patients can continue to access independent physicians.