By Deborah WhiteTo paraphrase Ben Franklin, when organizations have finished changing, then those organizations are finished. Hospitals and physicians have long enjoyed – or tolerated – cautious, symbiotic relationships; however, when either fails to respond to change by strengthening their strategic alignment, both will have trouble surviving on their own.
Employment of physicians by hospitals is one way of achieving strategic alignment, but according to the authors of
Aligning Hospitals and Physicians: Formulating Strategy in a Changing Environment, a white paper published last fall by
The Governance Institute, and to which MGMA contributed: "Behavior, rather than structure, defines whether a hospital or health system and a physician or physician group are aligned."
Alignment manifests itself with these characteristics:
- Physicians and hospital adhere to common values and visions, and avoid conduct that damages one another.
- Physicians engage in leadership roles and participate in programs to increase hospital efficiency.
- Physicians and hospital help each other comply with quality and safety standards.
- Patient management occurs seamlessly across the continuum from physicians' offices to the hospital.
As part of its research, The Governance Institute interviewed leaders of health systems at various stages of aligning with physicians. The white paper includes eight case studies.
"If hospitals and physicians are to move toward greater alignment," concluded the authors, "each will need to reassess old economic assumptions and adopt fresh approaches based on new realities."
Is your practice considering an employment model or other relationship such as a joint venture, professional services contract, medical directorship or physician-hospital organization?
Let us know about your experiences.
Deborah White is MGMA's senior membership recruitment manager.
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