Considerations for Physician-Hospital Integration

The professionals of EisnerAmper’s Health Care Services Group have observed a continued movement towards consolidation of health care entities in the Northeast region of the country. There have been a number of business reasons cited for this development.

Hospitals are finding it necessary to transition away from the constraints of the traditional voluntary medical staff toward committed physicians who will partner with the hospital and lead hospital priorities around more standardized measures of quality performance, patient safety, efficiency, and patient satisfaction. Furthermore, hospitals will continue to consolidate with larger systems to diversify services, gain access to capital and expertise, and integrate providers of inpatient and outpatient care.

At the same time, physicians are also looking to gain the expertise to reengineer practices and help implement team care. They’re also seeking financial stability, as growth in costs outweighs growth in reimbursement. As a result of these challenges, more physicians are entering the ranks of employment and independent physicians will see links with health systems and/or larger multispecialty groups. Physicians will also require capital to adopt new technologies that will drive higher levels of performance and quality improvement.

Increasingly, hospitals and physicians are jointly pursuing clinical integration contracts with aligned incentives that reward collaboration and higher-value health care.

Questions? Please contact your EisnerAmper Health Care Services Group professional to discuss these important considerations.

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