As the ACA implementation continues, hospital revenue will be increasingly affected by quality and outcomes. Initiatives such as Value-Based Purchasing, CPOE, and the Readmissions Reduction Program require that hospitals work closely with physicians to provide high quality care. At the same time, many organizations are experiencing enormous practice losses on their physician networks, especially on […]
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Case Study: Compensation Planning for a Tertiary Hospital’s Employed Physician Group with Diverse Specialties
Background Our client is a 1000+ bed tertiary hospital on the Atlantic Seaboard, which features a children’s hospital, a level one trauma center, and one of the largest transplant centers in the U.S. The client employs a broad range of specialties, from primary care to transplant surgeons. Compensation methodology for those employed physicians had historically […]
Due to the nature of services hospital-based physicians provide, no group is more logical or simple to truly “align” with. Their quality is your quality. Their mistakes are your mistakes. In the future, as bundled payment initiatives gain traction, it is very possible that your reimbursement will be their reimbursement. Now is clearly the time […]
We’re all familiar with healthcare’s new direction and jargon—”Fee for Value”; “Value-Based Purchasing”; “Patient Centered Medical Homes” and “Value-Based Care Organizations.” What these initiatives have in common are physicians. Employed physician networks are significant assets that take time and resources to build. The challenge now is figuring out how to leverage those assets to add […]
Hospitals have been purchasing practices and employing physicians for several years, here are keys to successful physician transactions.
The IRS, OIG and valuation industry have set well-defined standards for FMV (Fair Market Value) in typical physician/hospital transactions. That said, in our consulting practice, we often encounter situations that can cause problems when handled incorrectly. Reaching the Upper Limits Most FMV physician compensation arrangements are based on national data broken down geographically and into […]
Are you feeling pressure from your physicians to pay for call coverage? You are not alone. Call coverage compensation has been an increasingly salient issue for many of our clients. Avoid these common mistakes: Making one deal at a time Reacting separately to each physician’s situation is one of the biggest mistakes hospital executives make. […]
In an era of declining reimbursement, decision makers have become more worried that their organizations cannot continue to sustain the losses in their employed physician network. This has lead to numerous calls from decision makers asking our firm to evaluate all aspects of their employed network, from the overall strategy, to how the individual practices […]
Across the country, many hospitals are relying on a third party to review their anesthesia subsidies. We are seeing this trend because groups are requesting, and even demanding, additional financial support in exchange for the services they provide. Hospitals with financial and fair market value compliance concerns are uncertain how to respond so we’ve outlined […]