C-Suite Cheat Sheet: Physician Employment

Executive Summary

The number of hospital-employed physicians has been on the rise over the last ten years. For hospitals, increased physician employment can streamline processes, secure referral streams, and reduce costs. For physicians, hospital employment allows them to focus on patient care instead of administrative issues (facility and labor costs, insurance and reform challenges, etc.). As of 2018, 44% of physicians were employed by a health system, but many organizations are looking to hire more doctors as they transition away from the fee-for-service system. Greater physician employment enables closer collaboration among providers, better coordination across the care continuum, and more opportunities to keep business within the health system network.

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