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09.01.2009 Physician Employment Agreements with Hospitals
09-01-2009
Published in the Virginia Medical Group Management Association newsletter, Fall 2010.

The recent resurgence of hospital acquisitions of physician practices has been driven, in large measure, by hospitals’ desire to gain a competitive edge and referral stream by employing physicians and to position themselves to respond favorably to health reform. Physicians are similarly attracted to the prospect of being employed by hospitals as a hedge against reimbursement uncertainty, malpractice insurance costs, electronic health record expense, the complex regulatory environment, administrative responsibilities, and the prospect of health reform. Following is an overview of several important business considerations relevant to a hospital’s employment of a physician following a practice sale.

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