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.
