Hospitals own more private practices than in the past

In 2005, more than 60 percent of medical practices were physician-owned -  within three years, that number dropped below 50 percent, and analysts say this trend is expected to continue.  

The New York Times reports that the trend away from small private practices is driven by growing concerns over medical errors and changes in government payments to doctors. Another factor may be technology costs, including electronic health records.  A small physician group may not have the resources for this kind of technology, but hospitals do.

Some argue that this trend is contributing to the rising cost of health care because large health systems have more clout in setting reimbursement rates.  Others contend that the trend away from physician owned practices may help control costs as organized health systems are seen as a way to increase quality and lower costs, in part because salaried doctors may order fewer procedures than those in private practice. 

(Sources: New York Times, http://nytimes.com, March 25, 2010)