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.