Primary Care Threat to Hospitals

Primary Care is a Threat to Hospitals... More specifically, Non-Fee-for-Service Primary Care in the form on Onsite Clinics, Near-Site Clinics and Direct Primary Care for People on Employer-Sponsored Health Plans.
Employer-sponsored health insurance pays hospitals 254% of what Medicare pays, i.e. employer-sponsored health insurance is a 'cash cow' for hospitals.
Non-Fee-for-Service Primary Care decreases hospitalizations by 22% and ER visits by 11% (as demonstrated by Dr. Brent James from Intermountain Health).
Accordingly, lowering hospitalizations and ER visits for patients with employer-sponsored health insurance represents a serious financial loss to hospitals.
How much of a financial loss?
The answer can be calculated using the following statistics:
800 patient panel size per primary care provider
5% annual hospitalization rate for people on employer-sponsored health insurance
22% annual ER visit rate for people on employer-sponsored health insurance
$27,932 average allowed amount per hospitalization for patients on employer-sponsored health insurance
$2,453 average allowed amount per ER visit for patients on employer-sponsored health insurance
Result:
Each primary care provider reduces hospital revenue by approximately $298,000 per year through decreased hospitalizations and decreased ER visits.
Direct Primary Care Overview Video HERE: • Direct Primary Care Ov...
Ideal Health Plan Using Onsite/Near Site Clinic Video HERE: • Roadmap to High Perfor...
Sources:
www.cdc.gov/nc....
www.kff.org/he...
www.healthsyst...
www.healthsyst...
www.usinflatio....
www.kff.org/he...
www.healthsyst...
www.cdc.gov/nc...
www.rand.org/n....
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