Rachel Reeves, Marketing Planning and Leadership Council
Amid this year’s flu epidemic, providers are working overtime to vaccinate as many individuals as possible and treat those who are ill.
Earlier this season, HealthPartners took an innovative approach to vaccination: a drive-thru flu shot clinic. This is one of several convenient care models health systems are using to expand primary care capacity and position against new competitors.
HealthPartners takes an innovative approach to vaccination
Co-management is an increasingly popular model for partnerships between hospitals and physician-owned ambulatory surgery centers (ASC). Under co-management, hospitals maintain full ownership of the ASC and management services are contracted to the physician group. Hospitals should negotiate a two-level payment model for co-management compensation fees in order to mitigate risk and ensure quality.
The base fee is a fixed annual fee that reflects fair market value (FMV) for management responsibilities necessary to operate the ASC, while the incentive fee is a variable fee that reflects FMV for performance on quality and efficiency goals.
With little control over supervision and delivery of services, hospitals take a significant risk by investing in ASCs and handing over management to physicians. Incentive fees help shift some of that risk from the hospital to the physician group by making a portion of the total compensation contingent on how well physicians perform their clinical and management services.
Incentive fees mitigate risk to hospitals in co-managed ASCs
The Marketing and Planning Leadership Council previously featured the application of co-management models to the orthopedic service line and how these arrangements can improve both care and market share capture.
In our more recent work on referral management, we’ve come to realize another positive element that co-management can bring to the table; strengthening your referral network. Co-management arrangements that include elements linked to the business objectives of both organizations can be used as a lever to secure alignment with independent physicians, who are often more challenging to work with than employed physicians.
Reinforcing your referral network with co-management arrangements