Physician Alignment

Physician Employment  ◾  51

efficiencies, which then should cost less to the payer and patient and should lead to

an effective healthcare management model (Figure 5.6).

ere are also good defensive reasons for hospitals buying practices. If compet-

ing hospitals are buying practices that could potentially isolate referrals from your

system, buying practices simply to prevent the other system from locking in refer-

rals is a prudent idea. is, of course, can be dangerous if the price points rise to the

“irrational” level at which hospitals are paying overinflated prices for these practices

that they will never earn back in operating revenue. is can create issues like we

had in the 1990s when hospitals bought practices at irrational prices.

Physic