Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

Will integrated physician groups appeal to millennials?

Marc-David Munk, MD
Policy
September 28, 2014
Share
Tweet
Share

Around the country, doctors are leaving independent practice and joining large groups owned by health care systems. It’s a trend: the recruiting firm Merritt Hawkins predicts that if current growth continues, over 75% of newly hired physicians will be hospital employees within two years.

There seem to be a number of reasons for this consolidation of physicians and hospitals into islands of care. One is the desire for larger groups to have a better negotiating position with payers. Another is having better access to access to tools to manage quality-based reimbursement, risk contracts, and accountable care models.

Perhaps most important, groups are coming together to control the referral by keeping patients within a closed ecosystem, or island of care, while steering volume to affiliated/owner hospitals.

Being part of large organization is good for many doctors.  They can cloak themselves in white lab coats embroidered with their health system’s logo and rely on referrals that are based on their system affiliation. It’s also good for hospitals because they fill their beds at night.

And, while an all-inclusive concept of closed ecosystems has merit, particularly for older patients who value the security and convenience it offers, it would be a mistake to assume that a curated ecosystem will appeal to everyone. Indeed, there is a real danger that cost conscious, discriminating buyers — particularly millennials — will shun curated networks, regardless of their brand, in favor of a la carte shopping across many networks.

At a high level, two forces are pushing against the closed ecosystem model:

1. Many consumers are migrating to high deductible health plans which make them extremely price conscious. They may want their surgery done at hospital “a” by doctor “b” and have the MRI done at the corner independent imaging center. They will take deals where they can find them.

2. In aggregate, consumer taste has migrated from purchases in closed ecosystems such as department stores (which have wide but superficial selections) to independent and focused retailers with deep and narrow expertise.

We are seeing an emergence of patients who are willing to shop around to get the most specialized caregiver for a given condition at the most transparent and reasonable price. Millennials are disproportionately in this value seeking group according to work done by Deloitte. They are more likely to be insured by high deductible plans, feel health care value is poor and are increasingly willing to shop item by item even if it means buying services from several systems simultaneously.

A prediction: The growing transparency of costs/outcomes in health care may add fuel to the a la carte shopping trend.  If a reliable physician and hospital trust platform can finally get up and running (imagine a health care TripAdvisor with robust and audited outcomes data adjusted for acuity) comparison shopping may greatly diminish the value of health care islands from the consumer’s perspective.

Patients will pick the best caregiver for their needs independent of a PCP referral or a doctor’s participation in a network.  The health system logo on the doctor’s lab coat just won’t have the value it once did.

Marc-David Munk is chief medical officer, Reliant Medical Group. He blogs at Considering American Healthcare.

Prev

Question why your relative needs to be at a rehab facility

September 28, 2014 Kevin 5
…
Next

Where is compassionate end-of-life care for the elderly patient?

September 28, 2014 Kevin 19
…

ADVERTISEMENT

Tagged as: Hospital-Based Medicine, Primary Care

Post navigation

< Previous Post
Question why your relative needs to be at a rehab facility
Next Post >
Where is compassionate end-of-life care for the elderly patient?

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

More by Marc-David Munk, MD

  • a desk with keyboard and ipad with the kevinmd logo

    Patients should not have to advocate for their own safety

    Marc-David Munk, MD
  • a desk with keyboard and ipad with the kevinmd logo

    What Apple can teach health care: Hire unorthodox applicants

    Marc-David Munk, MD
  • a desk with keyboard and ipad with the kevinmd logo

    Why do some health systems fail? There are 2 reasons why.

    Marc-David Munk, MD

More in Policy

  • Why physician voices matter in the fight against anti-LGBTQ+ laws

    BJ Ferguson
  • The silent toll of ICE raids on U.S. patient care

    Carlin Lockwood
  • What Adam Smith would say about America’s for-profit health care

    M. Bennet Broner, PhD
  • The lab behind the lens: Equity begins with diagnosis

    Michael Misialek, MD
  • Conflicts of interest are eroding trust in U.S. health agencies

    Martha Rosenberg
  • When America sneezes, the world catches a cold: Trump’s freeze on HIV/AIDS funding

    Koketso Masenya
  • Most Popular

  • Past Week

    • Physician patriots: the forgotten founders who lit the torch of liberty

      Muhamad Aly Rifai, MD | Physician
    • Why medical students are trading empathy for publications

      Vijay Rajput, MD | Education
    • The hidden cost of becoming a doctor: a South Asian perspective

      Momeina Aslam | Education
    • Why fixing health care’s data quality is crucial for AI success [PODCAST]

      Jay Anders, MD | Podcast
    • When a doctor becomes the narrator of a patient’s final chapter

      Ryan McCarthy, MD | Physician
    • When errors of nature are treated as medical negligence

      Howard Smith, MD | Physician
  • Past 6 Months

    • What’s driving medical students away from primary care?

      ​​Vineeth Amba, MPH, Archita Goyal, and Wayne Altman, MD | Education
    • A faster path to becoming a doctor is possible—here’s how

      Ankit Jain | Education
    • How dismantling DEI endangers the future of medical care

      Shashank Madhu and Christian Tallo | Education
    • Make cognitive testing as routine as a blood pressure check

      Joshua Baker and James Jackson, PsyD | Conditions
    • How scales of justice saved a doctor-patient relationship

      Neil Baum, MD | Physician
    • The broken health care system doesn’t have to break you

      Jessie Mahoney, MD | Physician
  • Recent Posts

    • When a doctor becomes the narrator of a patient’s final chapter

      Ryan McCarthy, MD | Physician
    • Why innovation in health care starts with bold thinking

      Miguel Villagra, MD | Tech
    • Navigating fair market value as an independent or locum tenens physician [PODCAST]

      The Podcast by KevinMD | Podcast
    • Gaslighting and professional licensing: a call for reform

      Donald J. Murphy, MD | Physician
    • How self-improving AI systems are redefining intelligence and what it means for health care

      Harvey Castro, MD, MBA | Tech
    • How blockchain could rescue nursing home patients from deadly miscommunication

      Adwait Chafale | Tech

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 14 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Physician patriots: the forgotten founders who lit the torch of liberty

      Muhamad Aly Rifai, MD | Physician
    • Why medical students are trading empathy for publications

      Vijay Rajput, MD | Education
    • The hidden cost of becoming a doctor: a South Asian perspective

      Momeina Aslam | Education
    • Why fixing health care’s data quality is crucial for AI success [PODCAST]

      Jay Anders, MD | Podcast
    • When a doctor becomes the narrator of a patient’s final chapter

      Ryan McCarthy, MD | Physician
    • When errors of nature are treated as medical negligence

      Howard Smith, MD | Physician
  • Past 6 Months

    • What’s driving medical students away from primary care?

      ​​Vineeth Amba, MPH, Archita Goyal, and Wayne Altman, MD | Education
    • A faster path to becoming a doctor is possible—here’s how

      Ankit Jain | Education
    • How dismantling DEI endangers the future of medical care

      Shashank Madhu and Christian Tallo | Education
    • Make cognitive testing as routine as a blood pressure check

      Joshua Baker and James Jackson, PsyD | Conditions
    • How scales of justice saved a doctor-patient relationship

      Neil Baum, MD | Physician
    • The broken health care system doesn’t have to break you

      Jessie Mahoney, MD | Physician
  • Recent Posts

    • When a doctor becomes the narrator of a patient’s final chapter

      Ryan McCarthy, MD | Physician
    • Why innovation in health care starts with bold thinking

      Miguel Villagra, MD | Tech
    • Navigating fair market value as an independent or locum tenens physician [PODCAST]

      The Podcast by KevinMD | Podcast
    • Gaslighting and professional licensing: a call for reform

      Donald J. Murphy, MD | Physician
    • How self-improving AI systems are redefining intelligence and what it means for health care

      Harvey Castro, MD, MBA | Tech
    • How blockchain could rescue nursing home patients from deadly miscommunication

      Adwait Chafale | Tech

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Will integrated physician groups appeal to millennials?
14 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...