3 durable strategies for physician alignment

Physician employment, professional services agreements (PSAs), and income guarantees are three effective compensation-based strategies hospitals can use to achieve physician-hospital alignment. In choosing one or a combination of these strategies, hospitals should assess the strategic, regulatory, and financial considerations associated with them. Each strategy raises different implementation concerns-for example, employment presents the issue of compensation, PSAs involve greater regulatory constraints, and income guarantees test the long-term loyalty of physicians.