Hospitals hiring more physicians to increase revenues

Hospitals are hiring more doctors to try and gain market share through referral bases and admissions, according to a new study from the Center for Studying Health System Change.

Physicians are increasingly willing to join hospitals because of stagnant reimbursements, the rising costs of private practice, and desire for a better work-life balance, the study says.

Hiring more physicians can improve clinical integration and care coordination, although hospital employment doesn't guarantee clinical integration, the study finds. And employing more doctors can result in higher insurance rates and pressure on the employed physicians to order more expensive care, the authors contend.