The organization of heart services. Part three: Building a cardiac PHO

This article has examined some of the legal requirements for establishing a PHO or a SPHO. These guidelines have been presented in a generalized format. Legal counsel should be retained prior to developing a PHO to ensure that applicable legal statutes at the state, local and national level are met. Various organizational models have been presented for developing the PHO. The PHO entity allows the physicians and the hospital a single entity, representative of both parties, to locate, negotiate and enter into contracts on their behalf. The PHO can allocate revenues among the parties based on the amount of risk and services provided. There are some questions as to the long-term viability of PHOs given the regulatory changes occurring in the healthcare arena. Regardless of the regulatory changes that may occur, PHOs provide a vehicle for enhancing the relationship between a hospital and its physicians. PHOs are often a step in the process of developing a fully integrated healthcare organization. The PHO provides a forum for developing and enhancing trust and collaboration among the physicians and between the physicians and the hospital. Trust and collaboration will be key ingredients in the future as physicians and hospitals work more closely together in providing high-quality, cost-effective care that meets the patient market needs and expectations. Part Four of this series will discuss the fully integrated healthcare organization.