Physicians are increasingly selling their private practices to hospitals due to rising costs and reimbursement cuts under healthcare reform. The top reasons for physicians to sell are to reduce costs and gain financial stability and security. Hospitals acquire physician practices mainly to expand services and meet community needs. While physicians sacrifice autonomy through employment, they gain benefits like reduced administrative burdens and stress. A survey found that most physicians who sold their practices to hospitals have had their expectations met under the new employment arrangements.

1. Why Physicians Are
Selling Their Practices
— And Why Hospitals
Are Acquiring Them

2. Physicians are struggling
with the reality of operating
a private practice in the era
of healthcare reform.
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3. Doctors’ top two motives
for selling their practice
to a hospital/health system:
1. Costs of Maintaining Practice
2. Cuts in Reimbursement
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4. Physicians understand they are
trading independence for less
pressure and risk.
Security > Autonomy
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5. I pretty much knew what
would happen — giving up
autonomy and having to
meet certain expectations to
remain employed.
— OB/GYN
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6. Doctors said there are five
advantages to employment:
• Elimination of concerns about their
practice’s financial viability (71 percent)
• Less administrative work (43 percent)
• Less stress (42 percent)
• Ability to take time off (40 percent)
• Stability/security (37 percent)
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7. Why Hospitals
Acquire Practices

8. 68 percent
of physicians reported
approaching the hospital
to initiate acquisition talks.
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9. Hospitals’ top two motives
for acquiring practices:
1. Expand services
2. Meet community need
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10. Hospitals seek practices
that are a fit with their
culture and organization.
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11. Cultural alignment
has been a challenge
with some physicians,
according to executives.
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12. Primary care practices
have made up the majority
of acquisitions by hospitals.
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13. Hospital executives
are satisfied with
their practice acquisitions.
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14. Physician Attitudes
After Acquisition

15. How are acquired
physicians adjusting to the
realities of employment?
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16. 70 percent
of physicians said their
acquisition expectations
were met.
48 percent said fully met
22 percent said mostly met
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17. 94 percent
of the physicians hoping
to decrease their
administrative burden
have succeeded.
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18. 57 percent
of physicians who were
hoping to work less hours
have succeeded.
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19. 32 percent
of acquired physicians are
making more money than
they were in private practice.
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20. 40 percent
of acquired physicians are
making about the same
as in private practice.
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21. No longer being the
primary decision-maker
is something with which
former private practice
physicians struggle.
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22. 77 percent
of physicians said that if they
could go back and do it over
knowing what they know
now...they would.
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23. Survey Background
• National online survey of physicians
• Telephone interviews with 23 hospital executives who
had acquired at least one physician practice within the
past three years
• Telephone interviews with nine physicians who had
sold their practice to a hospital/health system
• All surveys conducted between May and June 2015

24. About Jackson Healthcare
Headquartered in Atlanta and among the largest healthcare staffing
companies in the U.S., Jackson Healthcare serves more than seven
million patients in over 1,300 healthcare facilities. The company also
helps hospitals optimize real-time patient care logistics.
Jackson has earned national media coverage by providing innovative
solutions to healthcare problems, in addition to championing local,
national and international charitable work. Atlanta Business Chronicle
named Jackson Healthcare the city’s “Best Place to Work” in 2014
and 2015 and “Healthiest Large Company” in 2015.
Get more physician trend data at jacksonhealthcare.com/physician-trends
© 2015 Jackson Healthcare