Physician Employment Changes

The physician–hospital landscape is changing dramatically due to a couple of significant factors, including Obamacare as well as the new generation of physicians. In short, the swing from physicians being independent to becoming employed by hospitals is driven by three key dynamics:

1. Physicians are motivated by stable compensation as a factor in seeking employment.
2. Physicians are gravely concerned about escalating private practice costs.
3. Newly graduated physicians have different lifestyle considerations than previous generations.

Consequently, the ratio of hospital-employed physicians to independent physicians is an ever-shrinking differential. Currently, there is approximately 1 hospital-employed physician for every 2.8 independent physicians. Within 3 years, the ratio is expected to change to 1 employed physician for every 1.9 private practice physicians.

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