Leveraging nonemployment to achieve hospital-physician alignment

Hospital executives should examine various forms of professional services agreements (PSAs), weigh pros and cons inherent in these arrangements, and understand appropriate uses of PSAs versus employment. For physicians, PSAs provide a way to more closely align with a health system without engaging in employment. Hospitals can realize financial benefits and greater stability from strengthened service lines, a growing patient and referral base, and potential to increase downstream revenue from ancillaries under PSAs.