NJ Spotlight: Primary Care Practices Could be the New Healthcare Model in NJ

[Editor's note: The following article was penned by Beth Fitzgerald from NJSpotlight.com]

The news that Dr. David Shulkin, president of Morristown Medical Center, is launching a doctor-owned primary care practice that could eventually number hundreds of physicians was greeted yesterday as evidence that the changes sweeping U.S. healthcare are making their way to New Jersey—a state still dominated by small practices that struggle to buy expensive digital medical record technology while facing pressure to improve quality and lower cost.

Shulkin launched the Primary Care Partners group by signing up seven North Jersey primary care practices.

Shulkin also is vice president of Atlantic Health, the healthcare system that owns Morristown Medical Center, Overlook Medical Center in Summit, and Newton Medical Center. Atlantic Health created PCP, then made Shulkin the majority stockholder and president. The initial 15 doctors bought stock, and as more doctors come on board they will also buy stock. Shulkin's equity will shrink, until he is one of hundreds of member doctors who own the practice, he explained.

A primary care practice with hundreds of doctors is unusual in New Jersey but increasingly common around the country. "When I tell people what we are doing," Shulkin said, "they ask, 'what took you so long?'"

Annette Catino, chief executive officer of the managed healthcare network QualCare, said PCP "Is preparing for the future. Healthcare reimbursements are going down and everyone -- hospitals and doctors -- have to figure out a better way: more efficiency with less money. And they will be held to a higher standard; there will be more accountability for the quality of the care they provide."

Catino said Shulkin is in the vanguard of an accelerating consolidation movement among doctors and hospitals. "We will be hearing about more and more of these deals; a lot are being worked on behind the scenes" she said, citing Barnabas Health and Hackensack University Medical Center as those building physician organizations.

Shulkin runs Morristown Medical Center. "I am a primary care doctor. I have a strong belief that primary care doctors are having a very tough time. You need to have a certain size group to meet all the increasing demands -- so I'm helping create a future model of primary care."

Shulkin said his goal is to build a 300- to 400-doctor primary care group, adding that dozens of doctors are considering joining. He pointed out that he has experience running a large doctor group: Atlantic Health employs 300 doctors, but they are all specialists.

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