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How to get the most out of hospital-employed physicians

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This Hospitals & Health Networks piece discusses how hospitals can get the most out of their physicians — particularly the ones younger than those from the now rapidly retiring Baby Boomer cohort.

The piece was instigated by the heavy cost to hospitals of their physician-employment surge. The article notes:

“The immediate result of the physician employment surge was escalating financial losses. With hospitals’ top-line revenues and volumes mostly flat, physician compensation (including call pay and directorships) became many hospitals’ fastest-growing expense. A recent report by Moody’s Investors Service found that physician employment was damaging hospital operating margins and, thus, their creditworthiness.”

So the article discusses such things as:

Operational improvements that can be achieved.

The challenge of bundled services.

The need to reduce needless variation in physician’s work.

Establishing a systems approach.

The authors conclude:

“Ultimately, hospital and health system management will need to take a more holistic view of the role of their physician practices to fully realize their value. It only makes sense to operate physician practices if they generate a quantifiable overall contribution margin for the health system.”

To read the entire article, please hit this link.

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