About This Blog
Welcome to the Marketing and Planning Leadership Council’s blog, Service Line Transformation. This blog serves as the primary communication channel for our Service Line Transformation Initiative, a special multi-year research effort dedicated to helping organizations prepare key service lines for risk-based payment. We will address challenges ranging from growth strategy innovations for key services lines to chronic care strategy, service line leadership, innovative approaches to service line marketing, and more.
For more information on the Service Line Transformation Initiative, or to send us questions, comments, or leads on innovative service line and care delivery models, please email Eric Sanford.
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
We regularly hear from hospitals seeking to better engage physicians in quality improvement and utilization management efforts. At a service-line level, hospitals have seen some success increasing physician engagement through co-management arrangements. Co-management arrangements pay physicians at fair-market value for administrative responsibilities and provide additional incentive payments based on achievement of quality and cost goals.
Hospitals find this alignment model to be particularly attractive for orthopedics service lines, given the independence of orthopedic surgeons and the substantial potential for both quality gains and cost reduction within orthopedics. In a survey of 258 hospital and health system leaders, 11% reported co-management of orthopedics service line, the third highest among service lines after cardiology (13%) and imaging (12%). Tight alignment with orthopedic surgeons will be even more critical as hospitals seek to balance two competing influences on volumes: Demographics will drive growth of joint replacement even as scrutiny of appropriateness increases.
Co-management models especially promising for orthopedic service lines
Hospitals have increased use of co-management as a means for enfranchising physicians in quality and efficiency improvement efforts within service lines. In particular, hospitals have been turning to co-management to improve performance of cardiovascular and orthopedic service lines.
However, use of co-management models for neurology service lines is much less common: in a survey of 258 hospital and health system leaders, 5% reported co-management of the neuroscience service line and 6% reported co-management of the neurosurgery service line, only half the number that report co-management models for cardiology and orthopedics.
Applying co-management models to neuroscience service lines