Every year, health systems are losing millions in revenue from their employed physicians. Referral leakage, sub-optimal performance, and lack of coordination between facilities all impact overall success.
As organizations prepare for a not-too-distant future where financial performance determined by high productivity and volume will be exchanged for financial accountability for cost and quality metrics—the need for a tightly-aligned, integrated physician enterprise has never been greater.
Managing an unsustainable model
Most often, there is a singular underlying issue preventing a group of aggregated practices from evolving into an integrated, cohesive medical practice—the lack of a defined operating model applied to every physician and practice within the organization.
Without a defined system-wide model, administrators and physicians alike are incentivized to behave in ways that lead to inefficiencies, variation in care and cost, and barriers to effective culture and brand. And when organizations try to manage physicians, instead of managing an effective model, the system breaks down:
Administrators are overseeing practices with disparate procedures and objectives. They are tied up with managing the employed physicians and their individual contracts, reviewing their productivity metrics and quality scores, arguing over supply costs, and defending the centralized billing and collections processes.
Physicians are put at risk for any decisions they make regarding their individual practice operations—what supplies are purchased, what positions are hired, and how patient care is coordinated. Furthermore, physicians are primarily incentivized based on their number of work units, not on the quality of patient outcomes.
By contrast, today’s high-performing medical group operates all facilities under the same brand, with a similar practice structure, and the same operational processes and quality incentives—resulting in a consistent patient experience, better outcomes, and more productive staff and physicians.
How we help
Our practice management experts help medical groups develop sustainable management models that incentivize consistent, high-quality, and cost effective care. We have seen that developing a cohesive medical practice—one that is physician-led and professionally managed, and with a partnership construct aimed at achieving shared strategic objectives—can yield a significant return on investment.
Client engagements are led by industry experts, with comprehensive support provided to identify and quantify the gaps in a practice’s current performance against best practice standards, market considerations, and custom analysis—and also to lead the full improvement process across all aspects of the physician enterprise:
- Patient access
- Professional fee revenue cycle
- Information technology
- Coding audit
- ICD-10 implementation
- Physician compensation
- Financial reporting
- Patient satisfaction
The consulting team is composed of experts in each of these areas, and can partner with your organization either comprehensively through practice management services or through focused consulting engagements. For organizations seeking additional hands-on support, we also offer interim management services for the physician enterprise.