As of January 2024, health systems employ 55.1% of all physicians and 28.4% of physician practices nationally.¹ Although health system revenues rebounded following the pandemic, operating costs increased at a faster rate, with growth in total expenses outpacing medical group revenue by three times per physician.² These financial realities have health systems heavily focused on maximizing return on investment from their employed medical groups.

As a result, network integrity is a top priority for most organizations. Many health systems employ physicians, in part, for the presumed benefits that come from an employed network: downstream revenue, streamlined care coordination, and improved patient experience.