Friday, November 06, 2009

Cardiology Consolidation Continues

This time, in Kansas City:
Cuts of the magnitude envisioned by Medicare, Holkins said, would present “a significant problem for the revenue side of our business model.”

The 14-physician practice, which has roughly 80 employees, has been independent since its founding in 1975.

So, Holkins said, the decision to affiliate was not taken lightly.

“I have really liked the idea of being independent,” he said. “But I also like to be able to pay our employees well and have enough left so our physician partners make a comparable salary to their peers in Kansas City, and I saw that as something I would not be able to do going forward.”


Anonymous said...

We can't trust those greedy doctors with medical decisions. The CEOs of large hospital systems are not greedy. Financial control should be ceded to these MBAs. After all, the doctors are cutting off diabetics legs for $50k. It is obvious that the cuts in doctor reimbursement have worked to lower health care costs.

Anonymous said...

i think the practices that are competing with other practices in the same facility are deathly afraid of a deal being worked with one of their competitors and getting locked out. that would definitively require the practice to do a major overhaul and possibly cut incomes for the physicians, likely by as much as 40%. the cardiology groups would definitely have to let people go, and equipment would be returned. physicians would leave.

fear of getting screwed by another group making a deal is motivating some of these buyouts.