With healthcare reform and the move to value-based reimbursement from both governmental and non-governmental payers, health systems across the country have been shifting their employed physician compensation models from purely production-based to a combination of productivity and quality incentives. Standardized quality measurements have developed over the past 25 years through accreditation entities such as National […]
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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 […]
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: 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. […]