Survey: Hospitals still rewarding docs for volume

Back to TopCommentsE-mailPrintBookmark and Share

Hospital leaders have done a good job talking about how they’re going to work with physicians to bring down costs while improving quality. But their recruitment patterns show they’re still incentivizing doctors for driving up procedure volumes.

According to the latest physician recruitment survey from Texas-based Merritt Hawkins, three-quarters of all physician searches include a performance bonus for the doctor. Fewer than 10 percent of those bonuses are tied to something other than volume of procedures.

“Though health reform encourages the use quality or cost based compensation metrics, few search assignments Merritt Hawkins conducted in 2010/11 featured such metrics,” Merritt Hawkins staff wrote in a summary of the survey. “Volume/production remains the standard.”

The survey is based on the nearly 2,700 physician searches Merritt Hawkins worked on from April 1, 2010 until March 31, 2011.

Most of these searches—56 percent—were conducted for hospitals, up from just 23 percent for hospitals five years ago.

Family practice and general internal medicine were the most common specialty searched for, the same as the previous five years.

In Indianapolis, the four major hospitals systems all have been employing more physicians, or pulling them in to tight agreements.

The latest example is Indiana University Health’s deal with Central Indiana Cancer Centers. IBJ reported last week that IU Health purchased the oncology practice’s five locations and took on its 150 staff members. The 16 physicians connected with the practice remain independent but have signed a service agreement to provide cancer care within the IU Health system.

IU Health also has more than 500 employed physicians. And Indianapolis-based Community Health Network has more than 550 employed physicians.

The federal Medicare program is creating an accountable care program in which it will pay bonuses to hospital-doctor groups that demonstrate high-quality care and also save money while taking care of a specific group of Medicare patients.

But those payment arrangements will not begin until 2012, and private health plans likely will follow later than that. In the meantime, hospital systems get paid based almost entirely based on the number of procedures performed in their facilities.



Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1