Together, hospital and physician services account for more than half of national health spending. In its 2014 National Health Expenditures estimates, the Centers for Medicare and Medicaid Services’ actuaries make the hospital (nearly $1 trillion) and physician practice (nearly $600 billion) sectors appear to be independent and non-overlapping. This is an optical illusion. Hospitals and physicians are, in day-to-day practice, hopelessly intertwined.
And while power appears to be shifting from physicians to hospitals with the increasing salaried employment of physicians, appearances can be deceiving. This post discusses the economic power balance between hospitals and physician communities, and the policy levers that influence this complex relationship — a relationship that is evolving in a way that could increase financial pressures on both hospitals and the American health system.
Physicians and hospitals must intimately collaborate or care does not get delivered. At the same time, hospitals and physicians directly compete in surgery, imaging, and other ambulatory services. In this relationship of simultaneous competition and interdependency, the borderline between hospitals and physicians is fraught both with economic conflict and moral/legal risk.
Strengthening primary care has been a core goal of health care payment reform over the past several years. Primary care physicians are the cornerstone of the health care delivery, directing billions of dollars of follow-on care. With better support, the models presume, primary care doctors could guide their patients toward a better health, direct them to the right care when needed, and in so doing, bring down unnecessary medical costs. Moreover, especially if coupled with payment reforms that can support better coordination with specialist practices, these reforms can provide an alternative to health system employment and 
It was the Mother of unintended consequences. 
