This is not what the doctor ordered.
Physicians employed by Indianapolis-area hospitals are likely to see their pay cut in the next few years unless the hospitals find new ways to be significantly more efficient.
That’s what the CEOs of two of the four largest hospitals operating in Indianapolis say.
“They’re going to have to sign contracts and kind of hold their nose,” said Dan Evans, CEO of the Indiana University Health hospital system, which employs more than 1,000 physicians.
Kevin Leahy, CEO of Franciscan Alliance, agreed.
“As third-party payers, such as Medicare and Medicaid, reduce physician payments, our system and all others will be forced to pass these cuts along to physicians, but also will do all we can to compensate physicians at current market levels,” said Leahy, whose organization operates three hospitals and employs more than 200 physicians in the Indianapolis area.
Hospitals acquired and employed physicians with abandon over the past five years, as independent specialists saw their reimbursement rates stagnate and hospitals worried they would lose the streams of physician referrals that keep their beds and operating rooms filled.
President Obama’s 2010 health reform law added to the trend, as it pushes in various ways to get physicians and hospitals to work together to keep patients healthy.
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