01 Dec 2016

All Co-Management Arrangements are Not Created Equal: Understanding True Value-Drivers

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By Nicole Montanaro
HFMA Advisor


The trend towards improved quality and transparency in healthcare is shifting hospitals’ critical success factors from financial performance to efficiency and quality performance that are on par with national and industry standards. In order effectively to elevate performance and keep up with these standards, many hospitals and health systems are involving physicians by integrating them into governance and leadership positions.

It has become abundantly clear that healthcare payment is making the shift from volume to value. As a result, physicians’ participation is vital for hospitals and health systems to achieve performance outcomes related to quality.

Introduction to Co-Management Arrangements

The quintessential co-management arrangement is a strategic agreement between a hospital and a group of physicians in order to align the physicians with the hospital for the physicians’ provision of improved quality and efficiency performance in exchange for compensation payable by the hospital. These arrangements can range in scope from a specific service line to an entire hospital or even multiple hospitals within a health system. They are most commonly seen for service lines such as orthopedic surgery and cardiology, but can be customized for nearly any service line or hospital program, from obstetrics/gynecology to neurosurgery to wound care. Click to continue on page 20.

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