Physician Costs in Hospitals

On September 13, the Health Services Cost Review Commission (HSCRC) issued a report that reviewed the two major categories of physician costs incurred by hospitals:

  • Costs associated with physicians who provide non-Part B professional services in the regulated hospital
  • Losses associated with the provision of physician services by hospital-employed physicians or by physician practices that are owned (at least 50%) by the hospital.

Effective FY2016, hospitals must report expenses and revenues according to the physician’s practice (hospital or non-hospital based) and specialty.  The HSCRC report includes some amazing data.  According to the report, the net losses associated with hospital-based physician Part B professional services in FY2016 amounted to $207,268,700.  In comparison, the net losses associated with non-hospital based physician Part B professional services were $337,721,420.  The complete HSCRC report can be found here.

From October 2 MedChi News