Are Patient Records an Economic Commodity?

[James Brady <jbrady@freenet.columbus.oh.us>]

This trend does not sound good to me.

---------- Forwarded message ----------
Date: Thu, 23 Nov 1995 04:50:30 -0900
From: "Richard L. Hannah" <rlhannah@frank.mtsu.edu>
To: Multiple recipients of list <healthmgmt@ursus.jun.alaska.edu>
Subject: Are Patient Records an Economic Commodity?

	While having my annual physical yesterday, my physician and I had a 
discussion about the economics of physician practices (his is a 
one-person private practice).  He said numerous corporations like 
HCA/Columbia had been trying to purchase his practice and those of his 
colleagues, and that a good deal of the valuation was based on the number 
of patient records which would transfer with the practice ownership.
	His concern was not only the loss of the personal 
physician-patient relationship, but issues of privacy of such records in 
such economic exchanges.  E.g., where are the patients' voices in all 
this?  As best I can tell, this is sort of like your mortgage being bought 
by different financial institutions, which leads me to suspect the 
patient records are the basis of cash flow assessmen, perhaps actuarially.
	As an economist (but no expert in the health area) I am quite curious 
if this method of valuation and purchase of private practices is common, 
and in digging a bit further into the topic.  I'd appreciate any comments or 
suggestions.

Thanks,

Richard L. Hannah, Assoc. Prof.		INTERNET: RLHANNAH@FRANK.MTSU.EDU
Economics and Finance Dept., Box 27	Off. Tel: 615-898-2228
Dir., Center for Economic Education	Fax:	  615-895-7580
Middle Tennessee State University
Murfreesboro, Tennessee USA  37132