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Reasons providers form PHOs.

F B Abbey1, K M Treash

  • 1Ernst & Young, Washington, DC, USA.

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|July 7, 1995
PubMed
Summary
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Physician-hospital organizations (PHOs) help providers negotiate managed care contracts and manage capitation. However, these organizations are new and face regulatory challenges as they build necessary infrastructure.

Area of Science:

  • Healthcare Management
  • Health Economics
  • Organizational Studies

Background:

  • Physician-hospital organizations (PHOs) are increasingly being formed by healthcare providers.
  • These collaborations aim to strengthen market position and adapt to evolving healthcare landscapes.

Purpose of the Study:

  • To investigate the primary motivations behind the formation of physician-hospital organizations (PHOs).
  • To assess the current developmental stage and operational challenges faced by PHOs.

Main Methods:

  • A survey was conducted among healthcare providers to gather data on PHO formation and operations.
  • Analysis focused on reported reasons for PHO establishment and perceived organizational maturity.

Main Results:

Related Experiment Videos

  • Providers establish PHOs to enhance contracting leverage with managed care organizations.
  • PHOs facilitate physician collaboration and improve capabilities for managing capitation.
  • The survey indicates PHOs are in early developmental stages, facing significant regulatory uncertainty.

Conclusions:

  • PHOs are emerging as a strategic response to managed care pressures.
  • Successful PHO development requires overcoming regulatory hurdles and building essential operational expertise and infrastructure.