Do Larger Physician Practices Provide Better Care at Lower Cost?

Researchers examined how the size of a practice, along with other characteristics, relate to the total amount spent on a patient’s care and the quality of care provided. Quality was measured by two indicators: 30-day hospital readmissions and admissions for “ambulatory care–sensitive” conditions, which usually don’t require hospitalization when appropriate outpatient care is provided. Annual risk-adjusted spending per high-need Medicare beneficiary was $1,870 (12.5%) higher in practices with 100 or more physicians than in practices with just one to two physicians.

       

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