Hospital-Based Subsidy Arrangements  

Overview

As resources constrain and expenses rise, health systems are experiencing explosive growth in their subsidies for hospital-based specialties.  HSG works with health systems to evaluate the operational and contractual cause for subsidies and evaluate and implement action plans to reduce subsidies while maintaining patient care delivery.  

Whether through direct employment or contracted arrangement, health system professional services arrangements with hospital-based provider groups continue to expand – with those agreements come significant subsidies.  While a subsidy is generally warranted, the intensity of subsidies experienced by health systems often significantly varies and is driven by a number of factors that must consistently be reevaluated to ascertain the validity of the subsidy in providing high-quality, accessible healthcare.  It is critical to have a consistent review process to evaluate these subsidies and ensure they are consistent with the economics of the market and the financial needs of the health system.