Creating a financially sound primary care network

Primary care networks can play a pivotal role in the delivery of healthcare services and are much sought after by integrated delivery systems that are attempting to attract managed care contracts. However, not all primary care networks are attractive prospects for affiliation; some lack the ingredients for financial success that integrated delivery systems require. A primary care network can ensure its financial soundness and thereby become an attractive candidate for affiliation by meeting the requirements of effective networks. These requirements include reaching consensus on the role the network will play in the delivery system, consolidating network practice sites, paying justifiable practice acquisition prices, using nonphysician practitioners appropriately, assuming risk, offering physicians participation packages, providing incentive compensation plans, implementing integrated information technology, securing multiple payer contracts, and implementing quality assurance standards.