Apprehensive doctors leave private practice for hospital salaries

A decade ago, only about 11 percent of doctors went to work for a hospital instead of going into private practice. Now, nearly 60 percent are choosing a salary over overhead, according to reporting by the New York Times.

Doctors are opting for a regular paycheck because of concerns about how the health care market is changing. They’ve seen reductions in Medicare fees and even sharper cuts in rates from insurance companies. By selling their practices to hospitals and becoming employees, they also no longer have to pay for malpractice insurance or provide health insurance to their staff.

Hospitals recruiting doctors are often looking for new revenue and to form networks so they can benefit from incentives in the Affordable Care Act. Bringing doctors on staff could create coordinated and cost-efficient care, but not immediately, according to experts. Overuse of tests is expected to continue and hospitals that conduct the expensive and sometimes unnecessary tests now also bill patients for a “facility fee.”

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