Armon Quoted on Hospital/Physician Financial Integration

Armon Quoted on Hospital/Physician Financial Integration

"Provider Regulation Hospital/Physician Financial Integration: Different this Time, but will it be Better?", Health Law Reporter

December 8, 2005

Bruce D. Armon, a Partner and Chair of the Regulatory, Privacy, and Healthcare Contracting Practice Group in the Philadelphia office, was quoted in this article about how financial integration in hospitals is becoming a hot topic again, as it was in the 1990s.

The issues driving the health industry are different than in the 1990s. While the main functions of integration remain to profit and avoid fraud and abuse problems, today hospitals face physician shortages in some areas and the physicians themselves are seeking additional sources of income.

In the 1990s, managed care was the main reason for integration. The economic reality is that costs have risen so much that the incentive for integration is greater now than during the past decade.

"I think that folks see the economic issues changing as to what's appropriate and what's not," Mr. Armon said. "The financial pressures on all types and sizes of providers are significant. Certainly since the last Stark regulations came out, I've seen an increase in hospital recruitment of physicians to be a part of a service area."