Trends in Physician Office Practices

Hospitals continue to increase their acquisition of physician practices. According to AHA statistics, hospitals employ over 212,000 doctors and this number is expected to increase as both hospitals and doctors seek mutually beneficial alignments. Currently, just over 55% of physicians remain independent. A recent survey revealed that 32% of first year residents prefer hospital employment and the HealthLeaders Media report found that 70% of US hospitals intend to employ more physicians in the next three years.

[protected] In office lab testing continues to be a bright spot for physicians coping with declining reimbursement rates. The numbers tell the story. A 3 physician oncology practice in North Carolina produced $400,000 in revenue and a 10 physician office can be expected to bring in something in the range of $700-800,000. Someone has to run and get paid for these tests and the physicians ordering them are saying ‘Why not me?”. New point-of-care (POC) technologies focused on infectious disease and personalized medicine tests from several companies will continue to drive growth in this segment. The POL segment accounts for 8-9% of diagnostic total diagnostic tests.

Another physician hotspot is mobile connectivity. Those who remember doctors being paged during college football games in the 70s know that doctors were among the first to embrace mobile technology. Over 10% of hospitals and group practices provide physicians with mobile devices and tablets are growing in physician preference.

For more information on this topic, the physician office lab market and companies staged to benefit from this segment please contact your Atheneum Partners representative and schedule an individual consult today. [/protected]

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Ken Powell

About Ken Powell

Ken Powell is the President of Genesis Business Development, a global health care consultancy. Mr. Powell has experience in the identification, acquisition, and commercialization of intellectual property, new businesses, and products in the clinical diagnostics, life sciences and medical device market segments. He has knowledge about emerging technologies, industry consolidation, personalized medicine, molecular diagnostics, hospital, commercial reference and physician labs, clinical lab systems, point-of-care, genomics, proteomics, life sciences, lab distributors and medical devices. He has provided Expert Witness testimony in an international lawsuit at the Royal Court of High Justice, London, England. Mr. Powell is also knowledgeable about evolving clinical diagnostic regulatory (FDA, CLIA, Congressional) and reimbursement issues. He has held senior management positions with Becton Dickinson, Roche Diagnostics, Technicon (Revlon Healthcare), Armour Pharmaceuticals, and Upjohn Clinical Laboratory Procedures. Mr. Powell is conversant in all aspects of clinical diagnostics, life sciences segments, current and emerging companies and select medical device segments. He has provided Expert Witness testimony in an international lawsuit involving infectious disease diagnostic technologies at the Royal Court of Justice in London, England.