Posted on Feb 11, 2023
ERs staffed by private equity firms aim to cut costs by hiring fewer doctors
388
3
1
2
2
0
https://www.npr.org/sections/health-shots/2023/02/11/ [login to see] /ers-hiring-fewer-doctors
Pregnant and scared, Natasha Valle went to a Tennova Healthcare hospital in Clarksville, Tenn., in January 2021 because she was bleeding. She didn't know much about miscarriage, but this seemed like one.
In the emergency room, she was examined then sent home, she said. She went back when her cramping became excruciating. Then home again. Valle said it ultimately took three trips to the ER on three consecutive days, generating three separate bills, before she saw a doctor who looked at her bloodwork and confirmed her fears.
"At the time I wasn't thinking, 'Oh, I need to see a doctor,' " Valle said. "But when you think about it, it's like, 'Well — dang — why didn't I see a doctor?' " It's unclear if the repeat ER visits were due to delays in seeing a physician, or if that affected her care, but the experience worried her. And she's still paying the bills.
The hospital declined to discuss Valle's care, citing patient privacy. But 17 months before her three-day ordeal, Tennova had outsourced its emergency rooms to American Physician Partners, a medical staffing company owned by private equity investors. APP employs fewer doctors in its ERs as one of its cost-saving initiatives to increase earnings, according to a confidential company document obtained by KHN and NPR.
Pregnant and scared, Natasha Valle went to a Tennova Healthcare hospital in Clarksville, Tenn., in January 2021 because she was bleeding. She didn't know much about miscarriage, but this seemed like one.
In the emergency room, she was examined then sent home, she said. She went back when her cramping became excruciating. Then home again. Valle said it ultimately took three trips to the ER on three consecutive days, generating three separate bills, before she saw a doctor who looked at her bloodwork and confirmed her fears.
"At the time I wasn't thinking, 'Oh, I need to see a doctor,' " Valle said. "But when you think about it, it's like, 'Well — dang — why didn't I see a doctor?' " It's unclear if the repeat ER visits were due to delays in seeing a physician, or if that affected her care, but the experience worried her. And she's still paying the bills.
The hospital declined to discuss Valle's care, citing patient privacy. But 17 months before her three-day ordeal, Tennova had outsourced its emergency rooms to American Physician Partners, a medical staffing company owned by private equity investors. APP employs fewer doctors in its ERs as one of its cost-saving initiatives to increase earnings, according to a confidential company document obtained by KHN and NPR.
ERs staffed by private equity firms aim to cut costs by hiring fewer doctors
Posted from npr.org
Medical
Health
Surgery
Posted 1 y ago
Responses: 1
1
1
0
PO1 William "Chip" Nagel
..."There is little mystery as to why. Federal data shows emergency medicine doctors are paid about $310,000 a year on average, while nurse practitioners and physician assistants earn less than $120,000. Generally, hospitals can bill for care by a midlevel practitioner at 85% the rate of a doctor while paying them less than half as much.
Private equity can make millions in the gap.
For example, Envision once encouraged ERs to employ "the least expensive resource" and treat up to 35% of patients with midlevel practitioners, according to a 2017 PowerPoint presentation posted by the company online. The presentation drew scorn on social media and soon disappeared from Envision's website.
Envision declined a request for a phone interview. In a written statement to KHN, spokesperson Aliese Polk said the company does not direct its physician leaders on how to care for patients and called the presentation a "concept guide" that does not represent current views.
American Physician Partners touted roughly the same staffing strategy in 2021 in response to the No Surprises Act, which threatened the company's profits by outlawing surprise medical bills. In its confidential pitch to lenders, the company estimated it could cut almost $6 million by shifting more staffing from physicians to midlevel practitioners."
..."There is little mystery as to why. Federal data shows emergency medicine doctors are paid about $310,000 a year on average, while nurse practitioners and physician assistants earn less than $120,000. Generally, hospitals can bill for care by a midlevel practitioner at 85% the rate of a doctor while paying them less than half as much.
Private equity can make millions in the gap.
For example, Envision once encouraged ERs to employ "the least expensive resource" and treat up to 35% of patients with midlevel practitioners, according to a 2017 PowerPoint presentation posted by the company online. The presentation drew scorn on social media and soon disappeared from Envision's website.
Envision declined a request for a phone interview. In a written statement to KHN, spokesperson Aliese Polk said the company does not direct its physician leaders on how to care for patients and called the presentation a "concept guide" that does not represent current views.
American Physician Partners touted roughly the same staffing strategy in 2021 in response to the No Surprises Act, which threatened the company's profits by outlawing surprise medical bills. In its confidential pitch to lenders, the company estimated it could cut almost $6 million by shifting more staffing from physicians to midlevel practitioners."
(1)
(0)
Read This Next
Continue with Facebook 
Continue with Google