At AAOS, Should Product Companies Fear Physician Employment?

Article preview from IN VIVO - March 01, 2011

By some estimates, nearly half of all physicians in certain specialties are no longer independent practitioners, but work within some collaborative arrangement with hospitals as full-time employees. Cardiologists and cardiovascular surgeons are leading the way, but orthopedic surgeons aren't far behind. In a session at this year's American Academy of Orthopedic Surgeons meeting, entitled "Hospitals Buying Surgeon Group Practices: Passing Trend or New Paradigm?," surgeons, hospital executives, and consultants offered their thoughts as to where this trend might lead.

At AAOS, Should Product Companies Fear Physician Employment?

Article preview from IN VIVO - March 01, 2011

By some estimates, nearly half of all physicians in certain specialties are no longer independent practitioners, but have sold their practices and/or work within some collaborative arrangement with hospitals as full-time employees. Cardiologists and cardiovascular surgeons are leading the way, but orthopedic surgeons aren't far behind.

And, according to the American Academy of Orthopedic Surgeons (AAOS), the trend is accelerating: recent data suggest that over the past couple of years, the number of orthopedic surgeons employed by hospitals increased just over 68%, while the number of surgeons in private practice, either as solo practitioners or in a group setting, was down, 19% and 8%, respectively. And in a session at this year's AAOS meeting, held in San Diego in February, entitled "Hospitals Buying Surgeon Group Practices: Passing Trend or New Paradigm?," surgeons, hospital executives, and consultants offered their thoughts as to where this trend might lead.

Product company executives have begun to note this trend more and more, at least anecdotally, and they see ominous portends as it catches on. Specifically, they worry that surgeons who are employed by hospitals will lose much, if not all of their prerogative in device/implant selection – either because as employees, they have no alternative or because they begin to see their interests and those of the hospital more closely aligned, particularly when it comes to cost-savings opportunities – and, in turn, hospitals will gain leverage with suppliers to negotiate price discounts.

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