Good article from Rachel Zimlich on the Kentucky Hospital Association study.
History repeats itself as the industry tries the same strategies over and over again seeking different results. The physician business is difficult because the producer (physician) demands such a high percentage of revenue in compensation. Hospitals struggle to manage those businesses for what they are – low margin endeavors.
There are five keys to making it successful:
- Unlink compensation to RVU
- Set up efficiently staffed offices.
- Eliminate bureaucracy layers of management.
- Keep doctors motivated to produce.
- Be patient in recruiting, find the right physicians.
Many hospital leadership don’t maintain a long term view of vertically integrating into physician services and perceive same specialty physicians to be interchangeable.
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This post was written by Brian White