Case Studies

Case Study: Defining an Appropriate Affiliation Strategy for an Independent Hospital

Our client, a standalone 200-bed hospital located in the eastern U.S., had experienced reasonable financial success over the last decade as an independent provider in a rural community. Faced with the challenges of reform, an aging facility and an aging medical staff, the board felt it would be wise to explore affiliation options. However, the board lacked a process for strategically identifying what type of affiliation would best position the hospital for the future and who would be the best partner.

Case Study: Alignment Strategy for a Medical Community with Both Employed and Independent Physicians

In 2009, our hospital client — a 175-bed hospital in Southeast– had a largely independent physician base and a handful of employed physicians. There was no alignment strategy to guide its relationships with either group. With HSG’s assistance, the hospital grew the employed group from eight providers to 40 over a three-year period. The resulting downstream revenue turned a -2 percent margin in 2009 to a +4% margin in 2012.

Case Study: Strategic Planning for a Rapidly-Growing Employed Physician Group

The number of physicians employed by a 300+ bed hospital in the Midwest had grown from 30 to 120 over a three-year period. While this growth was driven by a strategic initiative to increase alignment with the community physicians, the group that the physicians were put into lacked any formal infrastructure or identity. As a result, the hospital had a large group of physicians that were essentially operating as independent practices – so much so that many physicians in the group didn’t know who the other physicians in the employed group were.

Case Study: Defining the Tolerance for Subsidies by Specialty within an Employed Physician Group

Background Our client is a community hospital in the Midwest that operates a PHO consisting of 50+ physicians (largely employed, but some independents) across a number of specialties.  With mounting losses on the employed physicians in the PHO, executives within the organization began assessing practice losses by specialty. However, given competing strategic priorities within the organization, […]

Case Study: Cardiology Co-Management Agreement

Our client was a two-hospital system in the Mid-Atlantic region that was experiencing inefficiencies in their cath lab. The inefficiencies resulted in high costs-per-case, substandard outcomes and lost market share. The lab was used by interventionalists from two different, independent cardiology groups.

Case Study: Performing a Practice Assessment

Over a three-week period, HSG performed a complete audit of an employed physician network consisting of over 120 providers, 90 of which were physicians. It was operating at an annual loss of approximately $18 M.

Case Study: Physician Employment Entity and Infrastructure

We’ve had more than a few hospital clients who never made a formal decision to start hiring physicians, but nonetheless found themselves with a goodly number and mix of doctors on their payrolls. One particular client came to Healthcare Strategy Group in just that situation. They had a group of employed physicians, but that “group” didn’t function like a group in any sense of the word.