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Related Experiment Videos

Creating sustainable physician-IDS relationships.

M Benoff1, R Afable

  • 1HDMS, Inc., Bala Cynwyd, Pennsylvania, USA. oureande@aol.com

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|August 14, 2001
PubMed
Summary
This summary is machine-generated.

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Integrated delivery systems (IDSs) facing financial challenges with physician practices should re-evaluate physician employment. Assessing practice value and relationship needs can guide decisions on divestiture or alternative formal arrangements like joint ventures.

Area of Science:

  • Healthcare Management
  • Health Economics
  • Physician Relations

Background:

  • Integrated Delivery Systems (IDSs) have experienced financial difficulties due to physician practice ownership.
  • The optimal structure for maintaining effective physician relationships is under scrutiny.

Purpose of the Study:

  • To provide a framework for IDSs to assess the viability of physician employment.
  • To guide decisions regarding the future of owned physician practices.

Main Methods:

  • Individual evaluation of each owned physician practice.
  • Assessment of practice value to the organization.
  • Determination of the necessity for a formal business relationship.

Main Results:

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  • If a relationship is desirable but not formally required, divestiture may be considered.
  • If a formal relationship is necessary, employment should be weighed against alternatives.
  • Alternative formal relationships include joint ventures and equity arrangements.

Conclusions:

  • IDSs must strategically assess physician practice ownership and employment models.
  • Divestiture or alternative formal structures may be more beneficial than physician employment in certain cases.
  • Individualized practice evaluation is crucial for optimizing IDS-physician relationships.