How Primary Care Is Being Held Hostage to Tertiary Care

American health care has built a dazzling rescue operation. It can replace a heart valve through a catheter, map a tumor by its genetic mutations, and keep a critically ill patient alive with machinery that looks borrowed from a science-fiction set. Yet the same system may struggle to offer a routine primary care appointment before a small problem becomes a large, expensive one.

That contradiction is not accidental. The United States has organized much of its financing, workforce training, corporate strategy, and professional prestige around tertiary care: hospitals, subspecialists, advanced procedures, and treatment for complex disease. Primary care is expected to prevent illness, manage chronic conditions, coordinate specialists, answer portal messages, reconcile medications, and know the patient as a person. It is then paid as though most of that work occurred by magic.

Calling primary care “hostage” to tertiary care does not mean hospitals and specialists are villains. Their expertise is indispensable. The problem is structural: the health system gives downstream institutions control over money, labor, technology, referrals, and decision-making while asking upstream primary care to clean up the consequences.

What Does “Held Hostage” Actually Mean?

High-quality primary care is supposed to be accessible, continuous, comprehensive, coordinated, and centered on a long-term relationship. The National Academies describes it as the foundation of a functioning health system and recommends paying primary care teams to care for people rather than paying individual clinicians mainly for separate services.

In practice, primary care often depends on tertiary institutions for the resources needed to perform that role. Hospital systems may own the clinic, set productivity targets, control the electronic health record, employ the specialists, determine referral pathways, and decide which service lines receive investment. A family medicine office may technically be the “front door,” but the building’s owner keeps the keys, the budget, and occasionally the doorbell.

The hostage metaphor therefore describes a power imbalance. Primary care carries broad responsibility for patients but has limited authority over the systems that shape their care.

How Tertiary Care Gained So Much Leverage

Payment Rewards Activity More Than Continuity

Fee-for-service reimbursement favors work that can be counted, coded, and billed as a discrete event. Procedures, imaging studies, facility services, and interventions fit naturally into that model. Preventing deterioration, reviewing a specialist’s report, adjusting medications between visits, or persuading a patient to make sustainable lifestyle changes is harder to package into a profitable unit.

Despite years of experiments with value-based care, fee-for-service remains the dominant source of physician-practice revenue. AMA research found that roughly two-thirds of practice revenue in 2024 still came from fee-for-service arrangements.

The result is not subtle. U.S. primary care investment fell from 5.4% of total health spending in 2012 to 4.7% in 2021 under a narrow definition of primary care. More recent analysis has continued to describe primary care spending as less than 5% of overall health expenditures.

Compensation follows the same hierarchy. MedPAC reported median 2024 compensation of approximately $308,000 for primary care physicians, compared with about $525,000 for surgical specialists. MedPAC also noted that the gap can influence medical students carrying heavy educational debt when they choose a specialty.

This is not merely a salary debate. Compensation affects recruitment, staffing, appointment supply, professional status, and where talented clinicians believe they can build sustainable careers. Tell trainees that prevention is priceless, then pay them far less to provide it, and they may correctly conclude that “priceless” means “not priced very well.”

Hospital Ownership Changes the Center of Gravity

Independent physician practice has been shrinking. In 2024, only 42.2% of physicians worked in private practice, down from 60.1% in 2012. More than one-third worked in hospital-owned practices, while another 12.2% were directly employed by or contracted with hospitals. Primary care physicians were especially unlikely to remain in physician-owned practices, with private-practice rates generally in the high-30% to low-40% range.

Consolidation can provide useful infrastructure. A large system may supply technology, billing support, nursing staff, analytics, and easier communication among affiliated clinicians. That is the attractive brochure.

The less attractive page is that ownership can redirect referrals toward the system’s own hospitals, laboratories, imaging centers, and specialists. It can also move services into more expensive hospital-based settings. GAO’s review of physician consolidation found evidence of increased prices and spending after hospital-physician consolidation, generally without corresponding improvements in quality.

When a health system earns substantial revenue from hospital admissions, procedures, and facility fees, aggressively funding primary care to reduce those services may create an internal conflict. The organization may sincerely celebrate prevention at the annual leadership retreat while rewarding departments according to the volume prevention is supposed to eliminate.

Medical Training Is Built Around the Hospital

Future physicians spend much of their formative training in academic medical centers, where rare diseases, acute crises, complex procedures, and subspecialty expertise are highly visible. Community-based prevention, continuity, home circumstances, and longitudinal management can appear less dramaticeven though they affect far more people.

The National Academies has warned that primary care training is insufficient and too frequently located in hospital settings rather than in the communities where primary care is actually delivered.

This educational architecture shapes culture. The dramatic rescue receives the presentation, publication, fellowship, and applause. The family physician who helps a patient avoid kidney failure over 15 years receives a quality-measure reminder asking whether the blood pressure was entered in the correct box.

Primary Care Performs the Coordination, but Others Control the Information

Care coordination requires organizing services and sharing accurate information among everyone involved in a patient’s treatment. AHRQ identifies this deliberate organization as essential to safer, more effective care.

However, primary care teams regularly chase hospital records, clarify conflicting medication lists, repeat laboratory tests, submit referral forms, obtain prior authorization, and determine whether anyone acted on an abnormal result. Electronic records may function beautifully inside one institution and communicate with an outside clinic using the advanced technology known as “please fax it again.”

Referral systems can also turn primary care physicians into unpaid administrative navigators. AHRQ research on electronic referrals found that dysfunctional primary care-specialty interfaces produce inefficiency, unnecessary specialty demand, and poorer access. Structured electronic review improved communication and allowed specialists to advise primary care clinicians before automatically scheduling every referral.

The lesson is important: not every patient needs to be transferred out of primary care. Sometimes the primary care team needs timely advice, a clear protocol, or a rapid specialist opinion. When the only available option is a full consultation months later, both levels of care become congested.

What Patients Lose When the System Is Upside Down

Minor Problems Are Allowed to Become Expensive Problems

A strong primary care relationship can catch rising blood pressure, worsening depression, medication side effects, early kidney disease, and cancer warning signs before they become emergencies. Regions with greater reliance on primary care tend to experience lower utilization, lower spending, and better quality.

When access deteriorates, patients wait, visit urgent care, or use emergency departments. Each setting may address the immediate complaint without managing the person’s complete history. The system then spends generously on the complication it funded poorly to prevent.

Patients Become Their Own Care Coordinators

A patient with diabetes, heart failure, arthritis, and depression may see several specialists, each making reasonable decisions within a narrow clinical lane. Yet those decisions can collide. One clinician changes a medication, another orders a duplicate test, and a third assumes someone else is monitoring kidney function.

The primary care clinician is expected to integrate everything, but appointment schedules and reimbursement rarely reflect the complexity of that work. The patient or a family member becomes the backup coordinator, carrying medication bottles, printed reports, and the deeply scientific observation that “the blue pill was stopped, but nobody remembers by whom.”

Shortages Become More Severe and Less Equal

As of late 2025, HRSA counted 8,466 designated primary care Health Professional Shortage Areas containing about 92 million residents. Approximately 63% of those shortage areas were rural, and HRSA estimated that more than 15,000 additional physicians would be required to eliminate the designations under its minimum adequacy standard.

The future pipeline is also concerning. AAMC projections anticipate a shortage of roughly 20,200 to 40,400 primary care physicians by 2036 under modeled scenarios.

Shortages do not affect every community equally. Wealthier patients may buy concierge memberships, travel farther, or use virtual services. Rural residents, Medicaid beneficiaries, people without paid leave, and communities already experiencing poor health outcomes have fewer escape routes.

International comparisons reinforce the problem. Commonwealth Fund research has found that U.S. adults are less likely than residents of peer nations to have a regular primary care relationship, while American clinicians report limited after-hours arrangements and substantial coordination challenges.

This Is Not a War Against Specialists or Hospitals

Tertiary care saves lives. A patient with a stroke needs an organized stroke center, not a philosophical discussion about payment reform. A child with leukemia needs subspecialty oncology. A person with a complex congenital heart condition needs advanced imaging and surgery.

The goal is not to shrink tertiary care until everyone receives complicated treatment in the family doctor’s parking lot. The goal is to use each level appropriately. Primary care should prevent avoidable disease, manage common conditions, coordinate complexity, and identify who genuinely needs advanced care. Specialists should provide focused expertise and return clear recommendations. Hospitals should deliver acute and complex services without dominating every routine interaction.

A balanced system treats primary and tertiary care as partners. The current system too often treats primary care as a referral desk attached to a hospital revenue cycle.

How Primary Care Can Be Released

Pay Teams for Relationships and Outcomes

Primary care requires predictable, prospective funding that supports physicians, nurse practitioners, physician assistants, nurses, pharmacists, behavioral health professionals, care coordinators, and community health workers. A blended model can combine monthly population-based payments with limited fee-for-service reimbursement and incentives tied to meaningful outcomes.

Medicare has added codes for chronic care management, transitional care, behavioral health integration, and advanced primary care management. MedPAC has also supported correcting the passive devaluation of time-based office visits relative to procedures.

Still, primary care cannot thrive on an ever-growing scavenger hunt for billing codes. Payment should finance the capabilities patients need, including same-day access, medication management, outreach, electronic communication, and coordination after hospitalization.

Make Referral Relationships Accountable

Health systems should measure whether specialists answer consultation questions, return reports promptly, provide clear follow-up plans, and offer electronic advice when an in-person visit is unnecessary. Primary care clinicians should be able to obtain timely specialist input without launching every patient into a months-long appointment queue.

Referral quality should be treated as a two-way responsibility. Primary care should send a focused clinical question and appropriate preliminary evaluation. Specialty care should respond with guidance that can be understood and implemented. “Follow up with PCP” is not a care plan when the PCP was never told what happened.

Reform Consolidation and Facility Payments

Regulators and purchasers should examine whether acquisitions raise prices, restrict referrals, reduce patient choice, or shift ordinary office services into higher-cost hospital settings. Site-neutral payment policies can reduce incentives to charge different amounts for the same service merely because a hospital owns the building.

Ownership should not automatically be treated as integration. Genuine integration requires shared information, coordinated decisions, consistent access, and accountability for outcomes. A larger logo on the clinic wall is not a clinical innovation.

Train More Clinicians Where Primary Care Happens

Graduate medical education funding should support community health centers, rural practices, outpatient training sites, and longitudinal primary care experiences. Loan repayment, residency expansion, team-based practice, and sustainable compensation can help attract clinicians to underserved communities.

Growing the nurse practitioner and physician assistant workforces can improve access, but these clinicians should strengthen comprehensive teams rather than become lower-cost substitutes placed into the same rushed, fragmented model. MedPAC reports rapid growth in both workforces even as the number of primary care physicians billing Medicare has slowly declined.

Measure Primary Care Investment Publicly

States, federal agencies, employers, and insurers should report how much they spend on primary care and what that investment purchases. Without transparent measurement, organizations can announce that primary care is a strategic priority while allocating most new capital to procedural service lines.

Policy experiments also need stability. CMS launched the Making Care Primary model in 2024 to strengthen care management, specialist partnerships, and community connections, but announced its early termination in 2025.

Innovation cannot transform a long-neglected foundation when practices must repeatedly rebuild around temporary programs. Reform needs a durable national direction, not a collection of pilots that disappear just as clinicians learn the acronyms.

Experiences From the Front Line: What the Imbalance Feels Like

The following examples are composite experiences based on common patterns in U.S. health care rather than identifiable patient histories.

The Blood Pressure Appointment That Became a Referral Marathon

Consider an older adult whose blood pressure remains high despite two medications. The primary care clinician reviews home readings, diet, kidney function, adherence, sleep symptoms, and possible drug interactions. The work requires judgment, continuity, and repeated follow-up, but the payment system sees several ordinary office visits.

When the patient develops intermittent chest discomfort, the clinician appropriately requests a cardiology evaluation. The first available appointment is months away. The referral department requests another form, the insurer asks for authorization, and the cardiology office wants a test completed before scheduling. The test itself requires separate approval.

During the wait, the primary care team continues managing symptoms, answering messages, and deciding whether the patient is safe at home. If the patient eventually visits the emergency department, the hospital receives payment for an extensive workup. The clinic receives another electronic notification to reconcile the discharge medicationsassuming the notification arrives.

Nobody acted maliciously. Every organization followed its workflow. Yet the system financed the dramatic episode more reliably than the months of work intended to prevent it.

The Hospital Discharge That Returned Without Instructions

Imagine a patient discharged after treatment for heart failure. The medication list now contains several changes, but the primary care office does not receive the final discharge summary before the follow-up visit. The patient brings multiple bottles, including an old prescription that was supposed to be stopped.

The primary care clinician spends the appointment reconstructing what happened. A nurse calls the hospital unit. A medical assistant contacts the pharmacy. The clinician reviews laboratory results, arranges a weight check, explains warning signs, and tries to determine whether cardiology or primary care is expected to adjust the diuretic.

This is high-value transitional care. It may prevent a readmission, an adverse drug event, or kidney injury. It is also invisible labor when information systems do not communicate and payment fails to support adequate staffing.

The hospital performed the technically complex portion of care. Primary care must now make the plan function in a kitchen, bathroom, pharmacy, and family budget. That final mile is where treatment becomes healthor quietly falls apart.

The Rural Clinic Asked to Be Everything at Once

In a rural community, one primary care practice may handle diabetes, prenatal counseling, minor injuries, depression, dementia, childhood illness, and post-hospital follow-up. The nearest endocrinologist may be hours away. Behavioral health appointments may be scarce. Reliable transportation may be scarcer.

The clinicians therefore manage conditions that would be referred quickly in a metropolitan area. They become broader and more resourceful, yet they may have fewer nurses, smaller operating margins, older technology, and greater difficulty recruiting staff.

When the regional health system purchases the clinic, the acquisition may keep the doors open. It may also impose centralized scheduling, productivity quotas, or referral rules designed for a very different market. Decisions that once took a conversation with a local physician may require approval from an office several counties away.

That experience captures the central dilemma. Primary care needs the resources of larger systems but should not have to surrender its mission to obtain them. Support must expand local capacity, not convert the clinic into a feeder pipe for tertiary services.

Conclusion: Put the Foundation Back Under the House

The United States does not suffer from excessive medical sophistication. It suffers from placing sophisticated rescue care at the center of a system that should begin with accessible relationships, prevention, early diagnosis, and coordination.

Primary care is held hostage when it must depend on hospitals for capital, specialists for information, insurers for permission, and billing codes for survival. Releasing it requires more than praising family physicians during a workforce crisis. It requires transferring money, authority, technology, and training toward the front line.

A stronger primary care system would not weaken tertiary care. It would help hospitals and specialists focus on patients who truly need their expertise. It would reduce avoidable emergencies, improve chronic disease management, and give patients something American health care too often lacks: one trusted team that understands the whole story.

Editorial note: This article examines health-system policy and organizational incentives. It does not criticize appropriate specialist referrals or advise patients to delay hospital or specialty care recommended by a qualified clinician.