The True Value of a Medical Group in an Integrated Health System

As physician practice consolidation accelerates — with more than 57% of physicians now working in system-affiliated settings — health system leaders frequently misread the financial performance of their employed medical groups, relying on metrics that capture cost without accounting for strategic value. In this white paper, Fred Horton, MHA, President, and Jill Powelson, DrPH, MPH, MBA, RN, CPC, CPPM of AMGA Consulting argue that a more complete picture requires accounting for referral capture, payer contracting leverage, call coverage, population health infrastructure, and downstream revenue generation. Drawing on AMGA’s national survey database, the authors compare bottom-line performance for system-affiliated and independent physician groups — and show how normalizing for revenue differences fundamentally changes the story. The white paper equips health system leaders with a framework for more accurate, more productive conversations about the true value of an integrated physician enterprise.