An Open Letter to Contract Group CEO's

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NinerNiner999

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Dear CEO of (insert large CMG group)-

You have won. Your company, combined with the other 6 largest companies staffing Emergency Medicine have successfully conquered our specialty, and taken the vast majority of us as your workers. You have dominated the hospital marketplaces, masterfully combined with other specialty groups - Hospitalists, Anesthesia, Radiology - and have started to make unimaginable profits by combining your divisions, spinoffs, group acquisitions, and even each other into an unstoppable negotiating force based on economy of scale. You outbid, outcompete, and defeat all competitors vying for the majority of hospital contracts in the country. Some of you have even combined with the very hospitals you staff, and grow unimaginable joint ventures. You are truly masters of the universe, and have batted away all competition through business maneuvers and buyouts.

Because of your triumph, hospitals now have no choice but to invite you to sit at their table every time a contract group is up for bid, and allow you to give your presentation for why your company is better than any other group bidding for the same contract. You have even become masters at bidding against each other, with the hopes that a few small maneuvers or promises to hospital administrators will give you the edge to reap the profits from the work of your providers, and increase your dominance in the marketplace. From a business perspective, you are savvy, adaptable, and able to say whatever you need to get the contract you want. Because of you, the business of medicine has come a long way. Some of you, as CMG CEO's are even physicians yourselves.

I am humbled to write this letter to you, because not only do I work for you, I am part of your success, and I thank you for the opportunity to see my specialty change. It is this reason that I write this letter to you, and ask that you consider your dominance in the Emergency Medicine world, and begin to use it for reasons beyond earning your profits, but to enhance your profits, by gaining the loyalty of your providers.

Winning, managing and directing a contract is clockwork for you. Win the bid, schedule a transition date, figure out who you need to hire (and how to hire them), contract some doctors, and make a schedule. Find a leader that administration likes and have them run things for you on the ground, and presto - a new "local group" is born. I urge you, now, to consider the most important part of your mission, which is the retention of the shiny new contract you have just acquired. You see, every step from bid to group is done by your team, on your terms, and based on what the administration wants they are your customer, and you are their whipping boy.

Not one part of what you do to gain a contract actually involves the TEAM that will be put on the ground to keep the contract for you. They are hired, paid a meager hourly rate for putting their liability on the line, sacrificing their friends, families, holidays, weekends, nights, and vacations to keep their "job," while ensuring that you have a staffed schedule, a happy hospital administrator, and of course, metrics that keep you competitive. Not a single physician you employ or contract went to medical school with the eventual hopes of working an hourly rate they don't control, being graded for patient satisfaction, seeing as many patients as they can, and doing it as fast as they can while facing an endless list of core measure requirements. Your physicians do this because it's part of the job, and sadly, a series of obstacles that they must jump through, knock down and run around simply to care for their - YOUR - patients.

I am not writing this to whine, or ask for sympathy, but actually to present a business case that may give you the ability to completely give you stability, market value, physician loyalty, and a new model of practice in today's changing environment. You see, you have the keys to the kingdom.

As a contract management group with dominant market control and economy of scale, with the majority of Emergency Physicians in our nation, it is time you collectively joined to set the expectations of your sector. In ways no different than OPEC, you control the inflow and outflow of your oil. Why do you tolerate the potential loss of a contract because a local cardiologist at one of your hospitals does not like a physician because they don't speak fluent english? Why does an Emergency Medicine provider group have to displace their homes and their families because the anesthesia group contracted as a "bundle" with them isn't liked by the general surgeon?

The very fear you aim to avoid - the loss of business by losing a contract - is ironically something you are completely in the driver seat to control. Hospitals need Emergency Physicians, and more and more they need residency-trained and board-certified physicians. There are not enough of us to fill their ED's. Why do you and your competitors continue to permit your companies to be dictated by the people who need you? You don't need hospitals to hire you. You should set the price, you should make your terms, and define the rules of the game as a sector, as a market, and in collaboration with your competitors.

The NFL has several different teams, all of whom compete with each other, but have each agreed to be bound to the same rules on any field they play. The coaches and players may change, but the rules stay the same. If they are broken, there are penalties, sanctions, and suspensions. Even terminations. As physicians we have clinical guidelines, or rules that we practice by. Hospitals have their rules for kickbacks, inspections, and regulations. Why don't Emergency Medicine contract groups set their own rules?

Mr/Ms CEO, this is an opportunity for you and your fellow CEO's to seize the day and begin to negotiate on your terms, on the terms of your physicians that you hire, and for the patients they represent and treat. Join together, and set your own rules. Tell the national healthcare system that you own the controlling interest of all Emergency Physicians and speak on their behalf, as a sector - not as an individual company. Not as a college such as ACEP, but as an industry no longer willing to tolerate the abusive corporate process of contract competition.

If the leaders of Emcare, Teamhealth, Schumacher, ApolloMD, Hospital Physician Partners, Sheridan, CEP, EMP, etc unite, the industry of healthcare can only be strengthened while preserving individual corporate competition. Set the ground rules for your sport, and adhere to them as your own NFL, with each company following the same guidelines. Consider each hospital your playing field, subject to the same game rules as the rest of the league:

1) 1 year annual term contacts will no longer be accepted - 5 years minimum without a 90-day out clause. A good marriage has to make it work.

2) A new hospital administrative team cannot terminate your contract because they like another group. Good old boy connections and modern medical business can no longer exist.

3) Reimbursement will not be tied to physician metrics, but to provider compensation and volume. Don't hold the top 1% of intelligence, education, and training responsible for your inability staff radiology for a 30 minute X-ray read.

4) Hospitals will provide nursing resources, equipment, and throughput processes as basic requirements of your staffing. This means a true 4 to 1 nursing ratio, a fixed 2 to 1 critical patient ratio, and a system the prevents nursing callouts.

5) Provider metrics will be based solely on the provider's performance, and not the combined performance of the hospital department.

6) Emergency Physicians may not lose their contract due to termination of another contracted entity. If the hospitalist group is not pulling their weight, and they happen to be tied to the same contract as the ED, the ED physician is not to blame.

7) The Emergency Physician group will be the only deciding factor controlling the quality of their applicants. We know medicine, we know doctors, and we know risk - better than a medical staff office or hospital administrator.

8) Add any other areas you wish that commonly results in provider dissatisfaction, attrition, contract loss, increased group cot due to staffing requests, and other arbitrary business-damaging reasons.

Collectively, CMG's have more power than the hospitals that need to hire them. Wield your power for good and take away the hospital's ability to destroy your reputation, remove faith from your providers, and erode the foundation of our specialty. Stand up and say no. Empower yourselves and your providers and bring fairness, equity, and medicine back into healthcare. Create a doctrine for the business of Emergency Medicine and set and industry standard that no hospital can defeat, in your favor. If the hospital can't find a company to staff their department, and everyone plays by the same rules, it won't be long before you are in control.

The hospitals need you exponentially more than you need them. Please take our speciality back, and put it in the hands of the physicians that make your corporation possible.

Signed,


Emergency Physician.

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Good luck with that. If the CMGs wield their power, it will be for the benefit of their shareholders, not their employees, like any other corporation. They will pay you the bare minimum they have to to keep you working. Imagine if you owned the company- how much more would you pay your employees than the minimum amount required to keep them from going next door?

CMGs are not your friend. At least I have some mutual goals with the hospital. I don't have any with TeamHealth.
 
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I'd think putting in efforts to unionize CMG employed physicians would have better ROI than appealing to the better natures of corporate suits. Strength is the only thing they (anyone, really) understands. Sadly, I can easily foresee a day where unionization will be the only route for maintaining even a modicum of fairness. Once the CMGs completely destroy private practice and start consolidating among themselves to form 2 or 3 super groups, what is to prevent them from starting to ratchet down hourly rates for real? It doesn't matter whether your labor generates $500/hr of profit, if your only way to put bread on the table is to work for CMG A for $100/hr then that is what you will do.

This is already the reality for virtually every other industry in this country, and the trend is pointing to medicine joining them real soon. I hope a real effort is made by physicians to join forces and make a stand while we're still within living memory of "eating what we kill" rather than succumb to a world where the bargaining is about arbitrary 2% vs 3% annual increases of a paycheck to paycheck salary. Cause once we slip into that paradigm there is no going back to the current one.
 
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The only way to slay the beast will be when we band together and bring forth a class action fee-splitting lawsuit.
 
Good luck with that. If the CMGs wield their power, it will be for the benefit of their shareholders, not their employees, like any other corporation. They will pay you the bare minimum they have to to keep you working. Imagine if you owned the company- how much more would you pay your employees than the minimum amount required to keep them from going next door?

CMGs are not your friend. At least I have some mutual goals with the hospital. I don't have any with TeamHealth.

You also likely work in an area where cow tipping is a local pastime :p
 
As has been said these guys work to make money for themselves and shareholders. They view physicians as interchangeable cogs in the machine. Your metrics aren't up to par? They are happy to get a doe-eyed new grad who will take your spot. We've lost. Fortunately at the moment pay is higher than it's ever been due to a shortage and competition between these giant groups. It's a situation that won't remain forever, as either the shortage will end, or the super groups will collude with each other to set physician salaries.
 
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I'm pretty sure if all the CMG's met privately and agree to demand higher salaries for physicians (in turn taking higher percentage for their shareholders), this would be considered price fixing. Which is against the free market and illegal.
 
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These groups exist to make money.
They do not care about the docs, except as a way to make money. No reason to expect they would want to do any of the things you suggest.
 
I'd think putting in efforts to unionize CMG employed physicians would have better ROI than appealing to the better natures of corporate suits. Strength is the only thing they (anyone, really) understands. Sadly, I can easily foresee a day where unionization will be the only route
\
I hope a real effort is made by physicians to join forces and make a stand while we're still within living memory of "eating what we kill" .

I always find this topic so interesting, as the free market-Republicans or libertarians quickly turn blue.

HH
 
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I always find this topic so interesting, as the free market-Republicans or libertarians quickly turn blue.

HH

I'm completely free market. The problem is that we are operating under a non-free market where physicians by law can't practice on their own, or open up freestanding EDs in many states.
 
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Hey Dr. guy it's Jim Beam here with Health Team Locums. Just calling you at 4 am in the morning to see if you'd be interested in a job opportunity in bum &@$" nowheresville. It's a great hospital with terrible support staff, lots of push back and almost no resources. We're gonna pay you a decent amount but take a huge cut for ourselves because &@$" you. Let me know if you're interested or I'll just keep emailing you over and over even though you said unsubscribe since that must have been a typo.
 
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I always find this topic so interesting, as the free market-Republicans or libertarians quickly turn blue.

HH
The free market answer is enough EM docs refusing to work for a cmg...they can't keep contracts they can't staff. But as long as enough of EM is willing to "scab" the rest suffer
 
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The free market answer is enough EM docs refusing to work for a cmg...they can't keep contracts they can't staff. But as long as enough of EM is willing to "scab" the rest suffer

I don't know if scab is the right term.
 
I believe that was the term used for those who crossed strike lines in the early 1900s...sorry if i got it wrong

No, I just meant that working for a CMG doesn't inherently make you a scab.
 
The free market answer is enough EM docs refusing to work for a cmg...they can't keep contracts they can't staff. But as long as enough of EM is willing to "scab" the rest suffer

I think you meant doctors willing to work for low pay. Any time someone picks up a CMG job in California for $150/hour they are supporting these CMGs.
 
I'm completely free market. The problem is that we are operating under a non-free market where physicians by law can't practice on their own, or open up freestanding EDs in many states.

I see.

So you are completely free market except when there are legal or de facto inequalities or restrictions placed by government or big business on the "little guy".

HH
 
I see.

So you are completely free market except when there are legal or de facto inequalities or restrictions placed by government or big business on the "little guy".

HH
What do you mean "except"? I'm against government regulation of business in general, big or small.

Government shouldn't be making legislation telling us how we can practice medicine, where we can practice, and with whom. If I want to open up an "emergency clinic" on the corner, I should be able to do so without having to ask government permission. Right now the rules favor large hospital corporations and CMGs opening these things in many states.
 
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What are the general thoughts on USACS amongst everyone here? They seem like a viable alternative to help compete against the constant intrusion of these big money CMGs
 
No, I just meant that working for a CMG doesn't inherently make you a scab.

Maybe not if the job used to belong to the hospital instead of a group of doctors. But most CMG contracts were taken from doctors, whether that is because the doctors did a terrible job meeting the hospital's needs, or more likely, because the CMG came in, took advantage of its size and economies of scale (especially the ability to take a short term loss), or bribed an administrator, or offered something the SDG couldn't- like a big subsidy to the hospitalists.
 
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Maybe not if the job used to belong to the hospital instead of a group of doctors. But most CMG contracts were taken from doctors, whether that is because the doctors did a terrible job meeting the hospital's needs, or more likely, because the CMG came in, took advantage of its size and economies of scale (especially the ability to take a short term loss), or bribed an administrator, or offered something the SDG couldn't- like a big subsidy to the hospitalists.

Fair, but if you work for a group that was recently taken over by a CMG or do locums, yea, you're a scab. If you're just taking a full time job with an ED run by a CMG, you're not a scab - you're just getting a job.

That being said, I don't think there's anything inherently wrong with being a scab. I moonlight at a couple places that are hard to staff. I tell them what my hourly rate is and I'm fine with the transaction. It's just business.
 
What are the general thoughts on USACS amongst everyone here? They seem like a viable alternative to help compete against the constant intrusion of these big money CMGs

You cannot be serious. Do a search and see what General Veers thinks of EMP after working for them. If anything, I think it would be worse now.

I have no experience with them, but I think CEP might have a viable claim to being something different than the typical CMG. They are still a physician partnership, just a very large one.
 
You cannot be serious. Do a search and see what General Veers thinks of EMP after working for them. If anything, I think it would be worse now.

I have no experience with them, but I think CEP might have a viable claim to being something different than the typical CMG. They are still a physician partnership, just a very large one.

EMP specifically yes. But some of the other groups joining up with USACS seem more lucrative from a democratic/physician focused standpoint. And it seems that together financially, they can possibly help push back against the large CMGs for hospital contracts.
 
EMP specifically yes. But some of the other groups joining up with USACS seem more lucrative from a democratic/physician focused standpoint. And it seems that together financially, they can possibly help push back against the large CMGs for hospital contracts.

They are the epitome of big money now, as they are backed by a huge private equity firm. I was part of EPMG when we merged (got taken over) with EMP. They promised big things about physician ownership, equity, cost-cutting, and economies of scale. When the dust settled, we were all just employees, and now had less control over our practice and local site. The equity stake is a joke, and they can take it away from you at any time if you are fired for "cause". We saw 47% of our local site dollars get vacuumed up and sent to Ohio so they could have fancy dinner parties (of which I participated from time to time). When the CEO is driving a Masserati, it's definitely a problem when you're paying the rest of your docs $130/hour.

As evil as EmCare is as an organization, at least they have never lied to me. I always know where I stand with them.
 
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I think you meant doctors willing to work for low pay. Any time someone picks up a CMG job in California for $150/hour they are supporting these CMGs.

Even if it's for high pay, you're still helping them. They haven't achieved complete dominance yet so they are forced to offer competitive rates. Once they completely corner the market and achieve a monopsonistic power to set wages, the need to offer competitive rates will disappear right along with EM docs' job options. So while technically you didn't accept low wages during this transition period, you nevertheless supported the eventual, inevitable outcome by working for these CMGs and in so doing helping them arrive at an eventual monopsony.

This is not meant to be a personal attack, I don't think there is anything an individual physician can do to affect this, any more than I'm personally going to save the planet from global warming by not farting. But the reality is, "we" are all part of the problem by not energetically and actively fighting trends which are leading to quite obvious and deleterious results.
 
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I have 250,000 reasons to take the money while I can. It's compounding interest as we speak.

Unless there's a significant upside for new grads not to take a high paying CMG job (ex: making med school less god awfully expensive), I can't see the situation changing much. Rational actors gon' rationally act.
 
I have 250,000 reasons to take the money while I can. It's compounding interest as we speak.

Unless there's a significant upside for new grads not to take a high paying CMG job (ex: making med school less god awfully expensive), I can't see the situation changing much. Rational actors gon' rationally act.

I don't think it's rational actors so much as Prisoner's Dilemma. Realistically, I think every EM doc realizes that working for a CMG is ultimately a bad thing for the field and even their own long term salary. But, they also realize that their own individual choice to not work for a CMG will make no difference in the bigger picture unless all their colleagues do the same, so there is little incentive to leave money on the table in the short term for the sake of a purely symbolic act that won't gain anything in the long term. Unless some kind of effort at organizing occurs, we will continue to be atomized particles fluttering in the currents of change, aware of what is going on but completely powerless to affect it.
 
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EMP specifically yes. But some of the other groups joining up with USACS seem more lucrative from a democratic/physician focused standpoint. And it seems that together financially, they can possibly help push back against the large CMGs for hospital contracts.

let me put this another way: USACS is the mother of all CMGs. they are not pushing back against CMGs, they are CMGs. Physician ownership is a cliche they use as a selling point, it does not mean you have a say in anything nor does it mean that you make more money. That's not ownership. I did interview for some EMP jobs a couple of years ago and ran far away. Far far away. I have some friends who are tied to EMP dominated areas and they have no choice and I feel bad for them... They literally work just as hard as I do for $100 less an hour... (My hourly is good but not outrageous) Benefits are the same... Both W2.. I mean wtf. They are straight up getting ripped off. I'm mad for them even though they don't seem that bothered.. Been there several years so more power to em. Both of us live in big cities without significant geographic lean... But what are they going to do?? Move? Not always that easy...
It's mainly for this reason I am in favor of FSEDs... At least let the EM doc hang his or her own shingle and give it a go..
 
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I have 250,000 reasons to take the money while I can. It's compounding interest as we speak.

Unless there's a significant upside for new grads not to take a high paying CMG job (ex: making med school less god awfully expensive), I can't see the situation changing much. Rational actors gon' rationally act.
and sdg partners make significantly more than cmg employees.....sometimes rationally acting is delaying gratification for a couple years
 
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True, but you could make the sAme arguments for doing all locums, loan forgiveness, etc. in certain situations. My main point was that, while corporate med is probably not a good thing for physicians in the long term, the education system puts up significant barriers to new docs doing anything but getting work. If you want to risk sweat equity, shackle yourself to a cmg, or whatever, that's a personal choice.
 
True, but you could make the sAme arguments for doing all locums, loan forgiveness, etc. in certain situations. My main point was that, while corporate med is probably not a good thing for physicians in the long term, the education system puts up significant barriers to new docs doing anything but getting work. If you want to risk sweat equity, shackle yourself to a cmg, or whatever, that's a personal choice.

just pointing out that one of those personal choices sells out your peers
 
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The people who started CMG sold them out. Suggesting new grads are at fault for making a decision to work where they do is a flimsy argument.

Then again, neither of us (assuming students based on you profile) have boots on the ground, so it'll be interesting to see how things play out. Appreciate the discussion though.
 
just pointing out that one of those personal choices sells out your peers

Pssst: Depending on where you wanna work, there may not be any SDGs out there. Or maybe like, one or two that you DON'T want to work for, as is the case down here.
 
Pssst: Depending on where you wanna work, there may not be any SDGs out there. Or maybe like, one or two that you DON'T want to work for, as is the case down here.

that's just a marker of how far the slope everything has slid......there wouldn't be a CMG in the country if they couldn't find willing staff. Whether for good or bad, the only reason EM is going CMG is because EM physicians are willing to let it. I hope enough start preferring their autonomy enough to keep SDGs in business
 
just pointing out that one of those personal choices sells out your peers

Dude. Overstating your case, in a major douchy way. You think a doc from a one-hospital town is selling out his peers by going and practicing in his home town if that ED is run by a CMG? You think I'm selling out my peers if the only job I can find that's hiring in the city wants to live in is a CMG?

No. You're putting your family over your peers, which is what you SHOULD do. That isn't the same as selling out your peers.

Don't get me wrong, I hate a CMG as much as the next guy, but they may be the most viable option for some people. And that doesn't mean they are stabbing their colleagues in the back.
 
I think what he's saying is that ultimately, it is the collective willingness of physicians to work for CMGs that has created these situations where working for a CMG is the only option. EDs are going to exist and EM docs are going to work in them, that much is set in stone. The existence of CMGs on the other hand is entirely discretionary.
 
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Dude. Overstating your case, in a major douchy way. You think a doc from a one-hospital town is selling out his peers by going and practicing in his home town if that ED is run by a CMG? You think I'm selling out my peers if the only job I can find that's hiring in the city wants to live in is a CMG?

No. You're putting your family over your peers, which is what you SHOULD do. That isn't the same as selling out your peers.

Don't get me wrong, I hate a CMG as much as the next guy, but they may be the most viable option for some people. And that doesn't mean they are stabbing their colleagues in the back.
You could have been working in your hometown at an SDG if you hadn't been sold out by those who went before you. I get we all make individual value judgements but cmg infiltration isn't like the borg. EM docs are the only reason itcan happen.

If EM docs really wanted it over, it could be over in 6 months
 
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If I wanted to work in my hometown (metro area of ~ 2 million people) I cannot work for a SDG. They don't exist. My choices are:

1. EmCare
2. TeamHealth
3. EMP
4. Move to another city
 
Come to Canada.
 
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OK, so the comments are about as expected. How do we fix this? How can we - seriously - take back our profession of Emergency Medicine?
 
Illegal because.....again...GOVERNMENT

Pardon my ignorance here, but which law says we can't unionize?

Even if we can't do this right now, I believe it's time to lobby and challenge this in court. At the very least, it will start a national conversation about physicians being able to unionize, which alone is worth it IMO. I mean, I can't think of ANY physician or medical organization even attempting this in recent historical memory!

Such a move will also show a lot of physicians ACEP's true colors, and make it painfully obvious how much in bed they are with CMGs.
 
Pardon my ignorance here, but which law says we can't unionize?

Even if we can't do this right now, I believe it's time to lobby and challenge this in court. At the very least, it will start a national conversation about physicians being able to unionize, which alone is worth it IMO. I mean, I can't think of ANY physician or medical organization even attempting this in recent historical memory!

Such a move will also show a lot of physicians ACEP's true colors, and make it painfully obvious how much in bed they are with CMGs.
Striking is a method to force an employer to pay you more. If the goal is to end cmgs and return to physician autonomy then striking isn't what has to happen.

The docs would need to simultaneously form sdgs and bid on hospital contracts while refusing to work for cmgs.
 
Striking is a method to force an employer to pay you more. If the goal is to end cmgs and return to physician autonomy then striking isn't what has to happen.

The docs would need to simultaneously form sdgs and bid on hospital contracts while refusing to work for cmgs.

Collective bargaining rights can do more than maintain our pay IMO. It can shift the balance of power, and give us the ability to negotiate our working conditions.

What you're proposing is impossible. I don't believe physicians have that kind of capital.
 
From what I understand physicians are not barred from unionizing; rather, businesses are barred from colluding. The notion that doctors can't unionize is a mental construct people hold, basically an artifact of a bygone era where being a doctor was synonymous with being a business owner in private practice. Partners in SDGs can't "unionize" with their colleagues in other SDGs because that would represent collusion.

However, physician employees of CMGs can most definitely unionize. They're employees like any other, no different from auto workers or teachers, I see no ground on denying them legal rights just cause they have an MD after their name. I'd personally like the avoid unionization in favor of either A) taking ground back from CMGs organically or B) making sure they don't achieve monopsony, perhaps via anti-trust lawsuits. But if we ever arrive at a day when CMGs are so dominant they can dictate rates with impunity, unionization may be the only way to avoid getting completely steamrolled.
 
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