Many of the reasons why physician practice acquisitions come apart after the deals are finalized fall under the category of “operational incompatibility.” Too often, the team that negotiates the deal is not the same team that is charged with operationalizing the deal. As a result, potential administrative and management problems — from physician appointment schedules […]
Compensation is often a make-or-break deal point in a hospital’s acquisition of a physician practice. Prospective physician employees will naturally compare what they will earn post-acquisition to what they currently earn as practice owners, partners, or employees. From the hospital employer’s perspective, discussions around physician compensation provide important opportunities to win physicians over and to […]
Karin Chernoff Kaplan review the basics – and the importance of – establishing consistent processes for setting up and managing physician compensation agreements and thresholds that avoid regulatory problems.
For most hospitals and health systems, orthopedic services are a major contributor to the bottom line and indirectly support many other critical acute care services. Demand for orthopedic services is increasing—but so is competition among providers. To protect orthopedic share and margin in this environment, it will be essential for health systems and hospitals to […]
Healthcare organizations are moving beyond opportunistic physician practice acquisition and medical office building development to a more proactive, systematic approach to care and service. To become an ambulatory care leader, an organization must address the following three key factors. Optimal Service Mix and Configuration The organization should start by defining the ambulatory care service mix […]
Like most employees, physicians benefit from a supportive environment. Unfortunately, many hospitals and health systems rush right past creating such an environment, instead immediately asking newly employed physicians to increase production, optimize in-house referrals, reduce emergency department use, pay more attention to cost, and support other initiatives. Read the full article on Becker’s Hospital […]
We examine how to improve the negotiating position of hospitals and health systems entering into contracts with physicians, while ensuring compliance.
Physician employment agreements now commonly include compensation for services beyond basic clinical services; they may also provide compensation for medical directorships, teaching, on-call payments, and so on. We have found that physicians transitioning to hospital employment are generally accepting of clinical compensation models that include a base salary coupled with productivity and quality incentives. However, […]
When a healthcare organization is considering an acquisition, there are two imperatives: It should know both the fair market value (FMV) of the target organization (the value to a hypothetical buyer) and its investment value (the value to a particular buyer), and it should understand the difference between these values. An acquirer should carefully […]
Can your physicians easily project their compensation for the next year with reasonable accuracy, or do they need to have their accountants build elaborate Excel models to do so? Many hospitals and medical practices have made their physician compensation plans more intricate as healthcare has become more complex. However, compensation plans that are too complicated […]