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Market Insights: Evolving Physician-Practice Ownership Models
Physician-practice acquisitions and/or equity investment by such nontraditional players as health plans, private-equity investors, venture capitalists and large employers is an increasing trend. These new entrants give physicians new options for where and how to work. In the shift to value-based care, private-equity firms and new investors can provide physician practices with capital for investments, streamline administrative tasks, use economies of scale for purchasing, improve billing practices, bring in common-practice support tools and analytics, and expand services through digital technology and telehealth. What they promise to deliver is similar to what hospitals and health systems are trying to achieve in the transition to value-based care.
Fact Sheet: The Resident Physician Shortage Reduction Act of 2019
The Balanced Budget Act of 1997 imposed caps on the number of residents for which each teaching hospital is eligible to receive Medicare direct graduate medical education (DGME) and indirect medical education (IME) payments. These caps have remained in place and have generally only been adjusted as a result of certain limited and one-time programs.