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Charleston, S.C., Market Integration Likely to Drive Physician Groups to Seek Health System Affiliation
Date:11/5/2008

Competition for Outpatient Services Are a Leading Factor for Consolidation, According to New Report from HealthLeaders-InterStudy

NASHVILLE, Tenn., Nov. 5 /PRNewswire/ -- HealthLeaders-InterStudy, a leading provider of managed care market intelligence, reports that health system expansion efforts in the Charleston, S.C., area will likely lead to increased consolidation among local physician groups. According to the new Charleston Market Overview, health systems will be looking to add physicians to their medical groups to support expansion efforts or partner with physicians on outpatient surgery centers and other facilities.

According to the report, physician groups in the Charleston MSA have traditionally been able to secure state approval for the development of outpatient surgery centers without a hospital partner. However, as hospitals invest millions of dollars in expansion efforts, physician groups will likely face increased opposition to such plans as health systems look to protect their own market share.

"Expansion efforts may result in a more difficult road for physician groups seeking approval to add outpatient services without a hospital partner and will likely be a driving factor for physicians in the Charleston MSA to partner with area health systems," said Dave Raiford, market analyst with HealthLeaders-InterStudy. "Such opposition will be strongest in the fastest-growing, wealthier areas north of the city where health systems are focusing a majority of their expansion efforts."

Southeastern Spine Institute recently faced such a challenge when Roper St. Francis Medical Center opposed an effort by the Institute to obtain state approval for a surgical suite in its Mount Pleasant office. Roper is currently building a new hospital in Mount Pleasant.

"Expansion efforts will likely lead to area health systems requesting, and receiving, improved reimbursements from insurers," noted Raiford. "This is another factor driving health system/physician integration as health systems will want to have a robust physician network in place."

Area Expansion Efforts

In early 2008, the Medical University of South Carolina Medical Center, the largest health system in the Charleston MSA, opened the 156-bed Ashley River Tower. Roper St. Francis Healthcare, Trident Health System and East Cooper Regional Medical Center each have new facilities under construction or have submitted plans for future construction.

Why Pharmaceutical Companies Need Market Overviews

Market Overviews provide a detailed analysis of local healthcare market drivers, allowing pharmaceutical executives to quickly gain local area expertise. In addition to the 75 metropolitan statistical areas covered in our individual market reports, HealthLeaders-InterStudy will be producing the following NEW Market Overview reports in 2008:
Baton Rouge, La.

Cape Coral/Fort Myers, Fla.

Charleston, S.C.

Colorado Springs, Colo.

Columbia, S.C.

Lexington, Ky.

Madison, Wis.

Portland, Maine

Southern New Jersey

Spokane, Wash.

Springfield, Mass.

Wilmington, Del.

About HealthLeaders-InterStudy

HealthLeaders-InterStudy, a Decision Resources, Inc. company, is the authoritative source for managed care data, analysis and news. For more information, please visit http://www.HealthLeaders-InterStudy.com.

About Decision Resources, Inc.

Decision Resources, Inc. is a cohesive portfolio of companies that offers best-in-class, high-value information and insights on important sectors of the healthcare industry. Clients rely on this analysis and data to make informed decisions. Please visit Decision Resources, Inc. at http://www.DecisionResourcesInc.com.

All company, brand or product names contained in this document may be trademarks or registered trademarks of their respective holders.


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SOURCE HealthLeaders-InterStudy
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