Hospital affiliation – what are the considerations?

By Mgma In_Practice posted 04-06-2009 17:21

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By Bob Bohlmann, FACMPE

Many leaders of physician-owned medical practices are considering their strategic alternatives – and that includes affiliation with hospitals.

The current affiliation trend has evolved long enough to develop an understanding of benefits, commitments, misunderstandings and disasters, as well as differences from deals which were put together in the 1980s and early 1990s. Experience, as always, is the best teacher. In hindsight, both hospitals and medical groups have stated, "If we had only known what we know now, our structuring process would have created a better understanding, and avoided some of the frustrating issues we're faced with today!"

Most hospital systems and medical groups that join forces want a fair, mutually beneficial relationship. Nevertheless, if you are weighing a hospital affiliation for your group practice, you'd be wise to review key considerations before making that major change. Issues to weigh include:

How to dispose of assets
How physicians will be paid
What happens if your group wants out of the relationship
Whether you have a say in practice management
How your group will defend itself against the classic practice loss
Distribution of accounts receivable, and more

Administrators and physician leaders need to get these answers from the start, if hospital affiliation is even a remote consideration. You'll have to have a basis for informed decisions, as well as a negotiating checklist if you decide to move forward.

The MGMA Health Care Consulting Group has the resources to facilitate this process. The first step is to understand what to ask for. For more information on the right steps to take and what information you should gather, contact the MGMA Health Care Consulting Group at 877.275.6462, ext. 1877.

Robert C. Bohlmann is a principal consultant for the MGMA Health Care Consulting Group.

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Rachel Huveldt

01-13-2012 19:13

Hospital affiliation CPOE requirements. Am interested in learning whether hospitals are mandating physicians to utilize CPOE. One hospital I know is looking to remove staff privileges. Thanks.

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