population. It is estimated that about 75%–85% of people in a general population require only
9. What are some of the reasons solo practitioners are joining group practices?
Very few graduates of residency programs are entering solo practice. Several factors account for
this shift: rapid changes in the health delivery system, contracting by MCOs with consolidated
rather than solo entities, competition from larger health delivery organizations, the high cost of
establishing a new practice, the complexity of billing and collections in a multiple-payer system,
10. Why is it important for hospital administrators to regard outpatient care as a key
component of their overall business strategy?
Outpatient services now constitute a key source of profits for hospitals. As hospitals have seen
inpatient revenues steadily erode, they have expanded outpatient services. Under prospective and