It’s  called the group practice subsidiary (GPS) model, as explained by lawyer Curt Chase, J.D., a partner at Husch Blackwell LLP in Kansas City, Mo.,  during a presentation at the Medical Group Management Association annual conference.

Fierce reported: “The emerging model integrates independent practices with hospitals and healthcare systems while allowing physicians to keep their independence, Chase said. Rather than a hospital or health system owning a practice, it creates a subsidiary which employs the physician practice. The doctors are not employed by the hospital, but the hospital owns the subsidiary although it doesn’t subsidize it. The hospital has a certain level of control but the practice continues to operate much like it did before.

“For hospitals, the model provides a broader physician network, better positions them to work with community physicians to manage population health and gives them strategic, long-term affiliations with doctors.”

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