Prompted by the economy and declining reimbursements for patient care, health care entities’ direct employment of physicians is on the rise. According to the New England Journal of Medicine, hospitals or integrated health care delivery systems employ more than half of practicing physicians. Hospitals see advantages in the added control that employment brings. Physicians see advantages in the freedom from administrative burdens and the fluctuating financial aspects of private practice.

Managed-care-weary patients fondly remember Marcus Welby and Cabot Cove’s Seth Hazlet. Is there a place for them in managed care? What is the impact of adding this highly compensated group — clearly distinct in mindset and compensation — to an employee workforce with the many rights and privileges allocated to “employees” under discrimination laws?

1. A Historical Perspective

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