Knowledge Expansion

Cutting losses in hospital-employed physician networks

Insight Article


With the growth of physician employment by health systems, many challenges have emerged. Due to mismatches in supply and demand, inadequate management infrastructure, and a hospital’s willingness to invest capital in practices (such as for EHRs), losses on employed physician networks have steadily risen, to the point of beginning to threaten hospital bottom lines.

Hospitals have been willing to invest this money as they bought expanded patient access, emergency department (ED) coverage and ensured market viability. Health systems also realize that by building their employed network they are investing in capabilities to improve quality by better coordinating care and managing risk contracts over the long term.

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About the Authors

David W. Miller
David W. Miller MHA, FACHE
Founding Partner HSG Advisors Louisville, Ky.

HSG Managing Partner David W. Miller primarily focuses on strategy development, including strategic plans for hospitals & health systems and employed physician groups, affiliation/merger strategies, physician alignment strategies, primary care strategies, and service line planning.  He also provides board and medical staff education and retreat facilitation.  Before co-founding HSG in 1999, David spent four years as a Partner with the Galvagni-Miller Strategy Group and fifteen years as an executive with Norton Healthcare in Louisville.

David is a Fellow of the American College of Healthcare Executives (ACHE) and serves on the board of the organization’s Kentucky chapter. He holds a Master’s Degree in Health Administration from The Ohio State University and a Bachelor’s Degree in Management from Virginia Tech.

Travis Ansel
Travis Ansel MBA
Managing Partner HSG Advisors