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Physician/Hospital Relationships

 

The future need for local physicians and their hospitals to jointly meet the service area population's health care needs has never been more critical to either's continuing success.  Increasing consumer/patient expectations, aging populations, applied technology, and decreasing reimbursement are the key health delivery challenges. 

Physicians typically live a more "economic" model whereby their professional efforts directly drive personal compensation (i.e. being a physician is not what they do, it is who they are).

Hospitals, on the other hand, generally live a more "strategic" model whereby success is defined in terms of market share, patient satisfaction, and staff compensation that is usually not directly tied to personal unit production. 

The behaviors that result from these two very different business models drive different approaches to jointly servicing a market's health care needs.
 
If not designed properly, destructive confusion or competitive market positioning may emerge among these health care businesses.  Mutually-beneficial, collaborative approaches generally result once the local care delivery entities understand their desired relationship(s) and jointly determine the common outcomes they wish to achieve. 

Relationship options include:

  • Typical medical staff - entity follows traditional business models with little impact or concern

  • Vendor/vendee - program-specific

  • Program partners - aligned, yet continuous verification of both intent and performance is required

  • Best partners - trust of intent and performance at level where the other is never compromised and a "no surprises" communication policy is the norm

  • Equity model - governance and economic performance are risk-reward based and legally documented.

One model will not necessarily fit all local situations and elements.  One or all five may be necessary in any community.
 
For over 20 years, Wipfli Consultants have been helping local hospitals determine their best "strategic" model and how to integrate the "economic" physician model into a seamless program delivery that satisfies, and may exceed patient expectations.  Our consultants have both hospital and physician backgrounds and can bring the perspectives of both constituents to this issue.

Our success with this service has been achieved because we are able to help hospitals and physicians view issues form each other's perspective.  We design models that are viewed as "win-win."