Physician-ownership of ambulatory surgery centers linked to higher volume of surgeries.
Many physicians confronting declining reimbursement from insurers have invested in ambulatory surgery centers, where they perform outpatient surgical and diagnostic procedures. An ownership stake entitles physicians to a share of the facility's profits from self-referrals. This arrangement can create a potential conflict of interest between physicians' financial incentives and patients' clinical needs. Our analysis of Florida data for five common procedures revealed a significant association between physician-ownership and higher surgical volume. Possible remedies include revising federal law to require disclosure of investment arrangements; reducing facility payments to dilute ownership incentives; and reforms (such as accountable care organizations) that discourage an excessive rate of procedures.
Hollingsworth
John M
JM
Robert Wood Johnson Foundation Clinical Scholar at University of Michigan in Ann Arbor, USA.
Ye
Zaojun
Z
Strope
Seth A
SA
Krein
Sarah L
SL
Hollenbeck
Ann T
AT
Hollenbeck
Brent K
BK
D003953:Diagnosis-Related Groups; D005431:Florida; D013502:General Surgery; D006302:Health Services Research; D006801:Humans; D010067:Ownership; D018584:Physician Self-Referral / Q000706:statistics & numerical data*; D010818:Practice Patterns, Physicians' / Q000706:statistics & numerical data*; D012017:Referral and Consultation / Q000191:economics / Q000706:statistics & numerical data; D013531:Surgicenters / Q000706:statistics & numerical data*