Physician/Hospital Economic Relations
Competitive pressures, regulatory changes, and a challenging reimbursement environment have forced rapid evolution in the financial arrangements between physicians and hospitals. In the past, hospital relationships with physicians focused primarily on initiatives that would expand volume and market share. Today, the major initiatives confronting hospitals and physicians center on clinical integration and value creation.
As a leader in a healthcare provider organization, it is your responsibility to sort through varied and complex opportunities for investing in the physician/hospital relationship. ECG has the experience and knowledge to assist you in creating substantive, sustainable financial relationships between hospitals and physicians. Our services include:
We have distinguished ourselves as a firm that understands the complexities of financial arrangements between hospitals and physicians. ECG provides workable options and creative alternatives that address your specific environment.
Advising a medical group on acquisition by a regional health system and the formation of a medical foundation. Expand Minimize
We served as the principal adviser to a 140-physician multispecialty group during affiliation negotiations with a large regional health system. After successful completion of the affiliation, we assisted with design and implementation of the resulting medical foundation, one of the first foundation models in the country.
Developing market-based information to assist with an anesthesia group’s contract arrangements with a hospital. Expand Minimize
ECG assisted an anesthesia group in developing market-based information for anesthesia services and preparing recommendations for the clinic to use in negotiating professional service arrangements with its affiliated hospital. Specifically, we analyzed anesthesia compensation trends, designed a survey tool to conduct local and regional surveys assessing current hospital/physician arrangements related to anesthesia, worked with the hospital and anesthesia providers to facilitate agreement on key issues, and assisted in negotiating professional service arrangements. As a result of this engagement, both parties agreed upon staffing and compensation levels, as well other financial arrangements related to house officers, anesthesia after-hours coverage, preadmission services, physician recruitment, physician administrative time, and management fees.
Structuring a comprehensive joint venture between a large multispecialty medical group and a tertiary hospital. Expand Minimize
We assisted a 400-bed urban tertiary hospital with the design of a joint venture relationship with a 120-physician multispecialty medical group. The new relationship resulted in relocation of the group's specialists to the hospital's campus, specialty program development, and a joint planning council for cooperative ambulatory care ventures and shared responsibility for funding community services.
ECG helped guide a large multi-specialty group through a merger process with a hospital which was prompted by regulatory changes and economic opportunities which could be better accomplished by both parties in an integrated relationship. The work included assessing opportunities for an affiliation, framing the preferred options and facilitating the decision-making process for the private, 300-physician group practice. ECG provided further assistance with transactional steps and implementation of the post-transaction activity.
ECG helped a medical center design and establish an employed physician strategy, and to examine and assess the feasibility of employing a large primary care medical group practice in light of the new employed physician framework. Subsequently, we assisted with structuring the transaction and helping manage the operational transition of this practice from independence to part of the medical group enterprise.