Story perspectives

Hospital Employment of Doctors Soars, Costs Expected to Rise

1/9/2026

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Summary

Story summary

The share of doctors employed by or affiliated with hospitals rose from 29% in 2012 to 47% in 2024, signaling consolidation that raises costs.
Medicare's payment rules favor hospitals over independent practices, leading to significant reimbursement disparities.
Medicare pays $1,375 for a hospital-based colonoscopy versus $862 at an independent center.
Experts say site-neutral payments could save Medicare $202 billion over ten years and lower patient costs.

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Story summary

The share of doctors employed by or affiliated with hospitals rose from 29% in 2012 to 47% in 2024, signaling consolidation that raises costs.
Medicare's payment rules favor hospitals over independent practices, leading to significant reimbursement disparities.
Medicare pays $1,375 for a hospital-based colonoscopy versus $862 at an independent center.
Experts say site-neutral payments could save Medicare $202 billion over ten years and lower patient costs.