Co-management agreements are designed to align with physicians, create an alternative to traditional employment models, build a high-quality and lower cost delivery model, implement alternative payment methodologies and optimize service line performance.
Mr. Kossman explained the roles and expectations within a co-management agreement. A hospital is responsible for management, while physicians are held accountable for working towards the improvement of care. Administrators work with physicians to streamline clinical services and to initiate quality improvement measures.
Mr. Biala shared a vision of a first-generation co-management model. A first-generation model is generally focused on a single specialty or subspecialty and involves an individual hospital and its participating physicians. This first step in a co-management agreement targets simple metrics and often lacks true integration.
“The second-generation of a co-management agreement includes a total service line and true physician integration,” said Dr. Ash. Physicians are involved in strategic planning and operational management across the entire continuum of care. The second-generation model seeks to integrate additional hospitals.
The keys to a successful co-management agreement include transparency, clearly defined structure, balanced hospital and physician needs, attainable goals, appropriate benchmarks, thorough preparation, collaborative environment and effective leadership.
Once a second-generation co-management agreement has been formed, several goals can be set. Goals include aligning all groups with strategic, annual operating plans, focusing on the formation of an ACO and improving emergency department operations.
The benefits of a co-management agreement center on a streamlined, collaborative environment. Participants in the agreement will begin to see improved clinical and quality outcomes, shared service line management, enhanced operational efficiency, enriched strategic planning, program growth and alternative payment model strategies.
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