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October 17, 2008
In a region dominated by two big health systems, smaller hospital networks are protecting their turf by hiring doctors, buying medical practices and finding ways of helping other doctors who choose to remain independent.
The trend is hardly a return to the go-go days of the mid-1990s, when fierce competition by the University of Pittsburgh Medical Center, Highmark Inc. and West Penn Allegheny Health System’s predecessor hospital network bid up prices for medical practices as they competed for market share, experts say. But the hiring of doctors has recently picked up.
St. Clair Medical Services, a nonprofit affiliate of St. Clair Hospital, will acquire one of the South Hills’ biggest primary care practices effective Jan. 1, and Greensburg-based Excela Health has doubled the number of doctors on staff during the past two years, adding 56 doctors and increasing the total number of employed physicians to 115.
St. Clair’s acquisition of Fatigati-Nalin & Associates PC includes eight doctors, three offices and five nurse practitioners. The practice serves more than 20,000 people, including residents of 17 long-term care facilities, and the acquisition will not be the last.
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