Connecticut hospitals have been in a rush to add doctors and physician practices to their networks to build up market share and a strong referral base.
But the move isn’t always profitable.
In fact, hospitals adding doctor’s practices or individual physicians can often be a money losing venture, at least in the short term, experts say.
In 2010, Eastern Connecticut Medical Professionals (ECMP), which is the not-for-profit organization that operates physician office practices and a hospitalist program for the Eastern Connecticut Health Network, lost $4.2 million, regulatory filings show.
The 100-doctor practice, whose operating budget has grown from $3 million a decade ago to $28 million today, includes mid-level providers, hospitalists, specialists and primary care doctors who work at or outside Manchester and Rockville hospitals, which are part of the ECHN system.
Marc Andreessen speaks at the Fortune Tech Brainstorm conference in 2009. Image: REUTERS/Phil McCarten
