More hospitals are planning to acquire physician practices in 2013 compared to last year and it's because of opportunity, rather than strategy, according to a new report.
More hospitals are planning to acquire physician practices in 2013 compared to last year and it’s all because of opportunity, rather than strategy, according to a report from Jackson Healthcare.
The Trend Watch: Physician Practice Acquisitions 2012-2013 report tracked which specialties hospitals were looking to acquire and found that family practice, general internal medicine, OB/GYN and other primary care leading the list.
"This is the first year we have surveyed hospitals' medical practice acquisition behavior and preferences," Richard L. Jackson, chairman and chief executive officer of Jackson Healthcare, said in a statement. "In the coming years, we will be able to watch how acquisitions evolve in the era of health care reform."
The largest reason why hospitals are planning to acquire so many physician practices is because the physicians are seeking to sell (70%).
was a distant second, while improving patient safety brought up the rear as the least likely reason why hospitals acquire physician practices.
Family practices continue to be the most sought after acquisition target by hospitals. In 2012, 54% of acquisitions were of family practices and 31% of hospitals are planning to acquire a family practice in 2013.
For 2013 there are more specialties in general being acquired by hospitals. Last year hospitals acquired practices in 36 specialties, but in 2013 hospitals are planning to acquire 48 specialties. Some of the new specialties being looked at this year are geriatric medicine (by 3% of hospitals), bariatrics (by 2% of hospitals) and sports medicine (by 1% of hospitals).
More than 100 hospital administrators across the country completed the survey. More than half (58%) of respondents were located in a rural area, 26% were suburban and just 16% were urban. Most respondents worked at hospitals with 26-150 beds (52%), followed by hospitals with 300-plus beds (23%).
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Hospitals to Increase Physician Practice Acquisitions This Year - Jackson Healthcare