Physicians and hospitals are aggressively pursuing alignment strategies to stay competitive and match the accelerating pace of change and innovation. A spectrum of models is available, from minimal integration (e.g., medical directorships) to maximal integration (e.g., practice acquisition and physician employment). While employing specialists such as cardiologists and cardiovascular surgeons is common in some markets, it is neither straightforward nor acceptable to all parties in all situations and communities. It is best to consider a range of alignment options and pick the model that best meets the client's unique circumstances and needs.
Selecting the most appropriate alignment model will assist hospitals and their medical staffs in implementing a transformative strategy that can:
- Align strategic, operational and financial incentives between the hospital and its physicians
- Provide a platform for developing customized integration strategies (such as pay-for-performance, gainsharing, joint ventures, etc.)
- Improve operating performance and profitability
- Reduce/prevent competitive risk and predatory recruitment of physicians by competitors
- Gain competitive advantage; retain and expand market share
CFA has developed a multi-step process that can assist hospitals and their physicians in determining the most appropriate integration model to pursue.