Pandemic Could Reshape Physician Practice Landscape, Pay Models

AHA Market Scan Pandemic Could Reshape Physician Practice Landscape, Pay Models. Photo of a physician with a mask, goggles, and gloves on.Just like hospitals and health systems, physicians are taking a significant financial hit from COVID-19 and it may result in a rise in physician practice acquisition and consolidation as well as changes in physician compensation plans.

More than half of independent physicians reported concerns about whether their practices will survive during the pandemic, according to a recent McKinsey & Company survey.

In a recent survey by McKinsey & Company, nearly 70% of physicians cited financial support as the primary reason they were looking for a partner.The consulting firm surveyed physicians nationally in 2019 and again six weeks into the pandemic to gauge physician sentiment. Much had changed in that short time. In 2019, three-quarters of responding physicians said they preferred to join an independent physician group. Six weeks into the pandemic, nearly 90% of respondents said they would opt to join an independent group. Nearly 70% of respondents who said they were looking for a partner cited financial support as the primary reason.

If the current surge in COVID-19 cases continues and provider organizations are forced to cancel elective procedures, there could be additional negative financial repercussions for physicians, Dave Hesselink, a principal at the workforce consulting group SullivanCotter, recently told Modern Healthcare.

He notes that if hospitals and health systems are forced to cancel elective procedures due to another surge of the pandemic, they will be less likely to protect physicians financially. Some health systems already have started asking how to realign their compensation models now that volumes have dipped significantly, he adds.

AHA Center for Health Innovation logo

Related Resources

AHA Center for Health Innovation Market Scan
Buried deep within immense volumes of health care data are clinical insights waiting to be unearthed to improve treatments, cure diseases and better serve…
AHA Center for Health Innovation Market Scan
Under a new partnership, the Innovation Institute’s innovation incubator will work with robotic process-automation company Olive to co-develop and…
AHA Center for Health Innovation Market Scan
Disruption just keeps coming in the primary care sector. Denver-based startup Everside Health Group, which offers a nationwide in-person and virtual primary…
AHA Center for Health Innovation Market Scan
Walgreens has begun identifying locations for the first of 600 on-site clinics adjacent to its stores in 30 markets that will open in partnership with…
AHA Center for Health Innovation Market Scan
During the height of the pandemic, McKinsey…
AHA Center for Health Innovation Market Scan
A digital twin is a virtual model designed to accurately reflect a physical object. Digital twins use technologies like the internet of things, data streaming…