The new (unfortunate) realities facing employed cardiologists

The trend toward physician employment by health systems — and away from independence — has been well-documented over the past few years. But are the tides starting to turn?

When cardiologists began opting to be acquired by large healthcare systems a decade ago, they did so because they didn’t see any better options on the horizon. Their choices were to do it all — including revenue, payroll, insurance and billing — themselves, or to let an employer relieve some of their burden.

Back then, employment seemed like a logical choice, at least in theory. But now, as many hospitals and health systems struggle to break even financially amid mounting cost pressures, employed doctors are feeling the pinch. Some are even considering reclaiming their independence. Those that are brave enough to make the leap will discover they have many more resources available today to help them regain their autonomy and thrive independently.

Pressures against health systems keep mounting

The sea change in the health system environment, and its effects on employed physicians, traces its roots back to the COVID pandemic. Pre-COVID, major systems spent close to a decade growing their owned physician groups, many of which operated with razor-thin margins. At the time, cardiologists and other providers saw employment as a way to gain a level of certainty and reduce their administrative burdens.

Then came the pandemic and its near catastrophic after-effects. Hospitals experienced their worst operating year ever in 2022. That financial stress contributed to nearly a quarter of the 65 hospital mergers and acquisitions that occurred in 2023. While hospital margins have improved somewhat in recent months, massive cost pressures are continuing well into 2024, with hospitals paying more for labor, drugs, and supplies across the board.

The trickle-down effect: Employed cardiologists feel the squeeze

All this financial turmoil has directly affected employed physicians, including cardiologists. Employed practices are being asked to help their parent companies save money by doing more work with less resources. Additionally, lead physicians within employed medical groups find themselves spending more time managing physician extenders instead of delivering direct patient care, which keeps them further away from the job they love.

And all those administrative burdens that health systems were supposed to solve for physicians? They’re not easing. New legislation like the No Surprises Act reduces revenue for out-of-pocket charges and requires practices to provide patients with good faith estimates, creating more paperwork, not less. What’s more, cardiologists that have been acquired by health systems must navigate a bumpy transition period and wrestle with an onslaught of new technologies, workflows, and processes over which they have no control over. There’s nothing easy about that.

Health systems also pose a barrier for cardiologists who want to embrace value-based care models. Hospitals often carry high unit costs, and you can’t set yourself up for success with value-based patient models if your costs are already at the top.

“What’s perhaps most ironic is that the work-life balance cardiologists thought they’d achieve when they chose to be acquired is slipping away fast.”

What’s perhaps most ironic is that the work-life balance cardiologists thought they’d achieve when they chose to be acquired is slipping away fast. To a person, providers will tell you they have to beg their health system administrators for days off. They also worry that, come retirement, they won’t have anything to show for the massive equity they’ve invested in their practices over the years.

Finding your way back to independence

Employment may have seemed like a final destination 10 years ago, but it doesn’t have to be. Instead, cardiologists today can choose to leave employment, reclaim their independence, and reduce their administrative burdens.

“Employment may have seemed like a final destination 10 years ago, but it doesn’t have to be.”

Autonomy allows cardiologists to have more control over how they deliver care. They can choose to spend more time with their patients and develop stronger relationships that achieve better outcomes. They can even improve their work-life balance.

CardioOne’s unique combination of technology, talent, and administrative support is designed exclusively to help independent cardiologists thrive. As a partner physician with us, you’ll join a community of like-minded practice owners who share your passion for patient care and your desire to practice medicine on your own terms.

Guidance from experienced physicians

Our team is uniquely qualified to guide cardiologists back to independence. Our CEO and Board Chairman are both physicians with years of practice experience. Accordingly, we know that independent practices are actually small-to-midsize businesses, and that those business-related challenges are often the toughest ones doctors face.

We’ve designed CardioOne to help remove the hassles of revenue, insurance, and growth so providers can focus entirely on improving access to care and delivering that care. When cardiologists can practice free from the shackles of running the business side of the group, they will feel more satisfied, improve patient outcomes, and potentially drive significantly lower cost-of-care for members.

A private equity strategy focused on ensuring practice autonomy

Historically, independent cardiologists who have opted to monetize their practice by selling a majority stake to a private equity firm, have found that a private equity employment model has similar characteristics and frustrations to health system employment. While this model is still a strategy pitched by certain private equity funds, this approach all too frequently results in lower income (despite promises of “income repair” over time), less autonomy and a loss of control over the practice’s future.

However, there is another clinical enablement model that can serve independent practitioners looking to maintain their autonomy and full ownership in their practice. In this model, rather than acquiring practices, CardioOne has used the capital and resources of a private equity partner to build a next-generation suite of services and capabilities that is allowing cardiologists to thrive independently and better serve their patients.

“CardioOne has used the capital and resources of a private equity partner to build a next-generation suite of services and capabilities”

At the end of February 2024, CardioOne chose WindRose Health Investors as a long-term capital partner. WindRose is enabling CardioOne to grow our national platform and enhance our offerings for our partner physicians and their patients. With the combined support of CardioOne and WindRose, independent cardiologists will maintain full control and ownership of their practice, but are now armed with the capital necessary to thrive and offer the highest quality suite of services for their patients.

Employment isn’t the only option anymore

Your license to practice cardiology is your most valuable asset. You’ll hold it for the rest of your professional career. That’s why there’s no reason to stay in an employed relationship that isn’t letting you do the type of work you want to do.

With CardioOne, cardiologists have a new partner that can enable them to reclaim their independence, gain a better work-life balance, and reignite their joy of practicing medicine. If you’re interested in learning more, we invite you to explore what CardioOne has to offer.