Hospitals, health systems and even insurers have been integrating with physician practices, seeking success under healthcare reform, and an article in the National Law Review breaks down four hospital-physician integration strategies that are evolving throughout the country.
Anjana D. Patel, JD, and Alexandra Miller Khorover, JD, the authors of "Physician Integration Strategies: A Look at Evolving Models," describe the following four integration models:
• Entire practice acquisition: A hospital or system buys all of a physician practice's assets, directly employs all physicians and staff and acquires all equipment and space leases.
• Employment and practice lease: The organization employs the physicians and leases the practice's space, equipment and staff.
• Lease of entire practice: The physicians continue to own and be employed by their own practice but are leased to the hospital or system and the hospital leases the practice's space, equipment and staff.
• Purchase of ancillaries: Along with using the employment and practice lease or lease of practice models, a hospital or system can also buy the ancillary business. Or, an organization can buy the ancillaries and work with the practice to provide directorship services.
The authors also break down various legal issues that can arise from any hospital-physician integration deal, specifically in regard to the anti-kickback statute and the Stark law.
Adding Employed Practices to Your Organization? 6 Ways to Getting Buy-in From the Practice
Anjana D. Patel, JD, and Alexandra Miller Khorover, JD, the authors of "Physician Integration Strategies: A Look at Evolving Models," describe the following four integration models:
• Entire practice acquisition: A hospital or system buys all of a physician practice's assets, directly employs all physicians and staff and acquires all equipment and space leases.
• Employment and practice lease: The organization employs the physicians and leases the practice's space, equipment and staff.
• Lease of entire practice: The physicians continue to own and be employed by their own practice but are leased to the hospital or system and the hospital leases the practice's space, equipment and staff.
• Purchase of ancillaries: Along with using the employment and practice lease or lease of practice models, a hospital or system can also buy the ancillary business. Or, an organization can buy the ancillaries and work with the practice to provide directorship services.
The authors also break down various legal issues that can arise from any hospital-physician integration deal, specifically in regard to the anti-kickback statute and the Stark law.
More Articles on Physician Integration:
5 Common Physician Relations Faux PasAdding Employed Practices to Your Organization? 6 Ways to Getting Buy-in From the Practice