New evidence of the prevalence and scope of physician joint ventures

Abstract

Physician ownership of health care businesses (outside their own\npractice) to which they refer patients has attracted considerable attention in\nthe medical literature, in the media, and from federal and state policymakers. \nDespite the concerns raised about these ownership arrangements, known as joint\nventures, the prevalence and scope of joint ventures involving physicians is\nnot well documented. This report examines the prevalence and scope of\nphysician joint ventures in Florida based on data collected under a\nlegislative mandate. Our results indicate that physician ownership of health\ncare businesses providing diagnostic testing or other ancillary services is\ncommon in Florida. While this conclusion is based on our comprehensive survey\nof health care businesses in Florida, it is at least indicative that such\narrangements are likely to occur elsewhere. We find that at least 40% of\nFlorida physicians involved in direct patient care have an investment interest\nin a health care business to which they may refer their patients for services;\nover 91% of the physician owners are concentrated in specialties that may\nrefer patients for services. About 40% of the physician investors have a\nfinancial interest in diagnostic imaging centers. The estimates reported here\nindicate that the proportion of referring physicians involved in direct\npatient care who participate in joint ventures is much higher than previous\nestimates suggest.