Reimbursement for healthcare providers is continuing to shift towards increased incentives for quality outcomes and cost management, as insurers (particularly CMS) focus on reducing fee-for-service payments and increasing the amount of risk taken on by providers. As examples of this, recently, we have seen CMS release its regulations for Value-Based Care Organizations (ACOs), which will […]
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Clients are reporting a growing awareness by their Boards of losses per physician in hospital employed networks. With average losses approaching $200K, many systems are finding that shrinking margins and uncertainty about the impact of health reform are again focusing attention on mounting red ink in employed networks and senior leaders are being challenged for […]
Hospitals and systems have mixed results when employing increasing numbers of physicians, that according to the influx of calls we have fielded from our clients. They want to know the best way to engage these physicians to improve results, citing significant practice losses, physician apathy, and frustration from administration that employment has not had more […]
Major investments and significant losses are too often the outcome when hospitals employ physicians. But market realities are driving such employment, as private groups struggle economically and hospitals face the reality that employment will likely be required to ensure an adequate supply of physicians. So, what is a CEO to do? As a model, we […]
Hospitals are acquiring physician practices at a brisk pace. Driven by the economics of medical practices, the shortage of physicians in some specialties, and a variety of other issues, the trend toward physician employment is growing. In helping dozens of hospitals evaluate acquisition opportunities or complete acquisitions already committed to, our consultants have seen almost […]
The regulatory environment is quickly changing and those changes are affecting how certain physician deals must be structured. If you plan to employ a physician and house them in an existing private practice, these guidelines are important. The advantage for the employed physician is access to office space, staff, supplies, etc. without the cost of […]
As hospitals employ physicians or acquire practices, management of the new entity is frequently a challenge. The issues in a practice differ from the hospital and the scale of the operations is much smaller. That means that mistakes are magnified, quickly showing up on the practice bottom line. The result is often an underperforming practice. […]