Physician ownership of physical therapy services: effects on charges, utilization, profits, and service characteristics

Article Abstract:

Physical therapy clinics that are owned by doctors may see more patients and generate more revenue for their owners than clinics that are not owned by doctors. A survey of 118 physical therapy clinics and 63 rehabilitation clinics in Florida found that patients attending a joint venture clinic, that is, one wholly or partly owned by a physician, made at least five more visits to the clinic than patients attending a non-joint venture clinic. Joint venture clinics generated one-third more revenue than non-joint venture clinics, even though joint venture clinics hire fewer therapists who spend less time with the patient. Therapists in non-joint venture clinics spent almost twice as much time with patients as those in joint venture clinics. The increased cost at the joint venture clinics is a result of the increased patient visits. Joint venture clinics tended to treat patients with private insurance, whereas non-joint venture clinics treated patients on Medicare or those who were uninsured.

Physical therapy services

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New evidence of the prevalence and scope of physician joint ventures

Article Abstract:

Almost half of the doctors who practice medicine in Florida have partial or total ownership in a health care facility to which they could potentially refer patients. Information on ownership was solicited from 2,200 health care facilities in Florida, including diagnostic imaging centers, ambulatory surgery centers, clinical laboratories and medical equipment suppliers. Approximately 10,000 health care professionals were identified as being partial or total owners, and 81% were doctors. More than half of the facilities were owned by doctors, and many of the doctors were practicing in specialties that would be most likely to refer patients to these facilities. In addition, many of the facilities receive most of their referrals from their physician owners. Of the 18,250 doctors practicing medicine in Florida, 7,600 own health care facilities to which they may refer patients.

Physicians, Medical professions, Ethical aspects

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Consequences of physicians' ownership of health care facilities - joint ventures in radiation therapy

Article Abstract:

Joint ventures in radiation therapy may increase the cost of health care and the inappropriate use of services. Joint ventures are free-standing health care facilities owned by physicians at which they do not practice. A study examined joint-venture free-standing facilities for radiation therapy in Florida, where almost half the facilities are joint ventures. Free-standing facilities that were joint ventures received 39% of their profits from patients with full health insurance coverage, compared with 31% for those that were not joint ventures. Radiation physicists at joint ventures spent 18% less time with each patient than those at facilities that were not joint ventures. The use and cost of radiation therapy at free-standing clinics was 40% to 60% higher in Florida than in the rest of the US, but the cancer rate is not higher in Florida.

Management, Ambulatory care facilities, Radiotherapy, Clinics

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