Web Extra

James Pizzo
Todd Fitz 

Playbook Elements

1. Define an operating structure under which newly acquired/affiliated physicians would operate and be integrated into system activities.

2. Develop a strategy to align the newly acquired/affiliated physicians with the broader physician community, including physicians who remain independent.

3. Develop a replicable practice acquisition program that clearly defines the process and timeline to acquire practices and employ physicians including due diligence, letter of intent, and deal closing.

4. Create a process to quickly evaluate and define the future operational and financial commitments that must be made to support physician initiatives.

5. Develop a consistent compensation model for acquired physicians, which will subsequently feed the financial model.

6. Develop a series of strategies outside of direct employment to offer to physicians who choose to remain independent.

Elements of a 100-day Transition Plan

1. Business considerations: Will there be restrictions on referrals (potentially changing referral relationships) and facilities used (i.e., network facilities only)?

2. Technology considerations: Developing seamless two-way information flow is one key advantage to be gained by physician practice acquisition. Will this be accomplished through a new or existing EMR? What investment in training and maintenance will the organization make? A responsive help desk is required for new technology.

3. Systems support: Will appointment systems, billing systems, and accounting systems be local or offered through a central office?

4. Contracting with payers: Will physicians move from signing their own contracts to control of this function under the organization's contracting office? Will risk incentives be offered?

5. Operating model: Will physicians be employed directly or through a tax-exempt or taxable subsidiary, an independent or joint-ventured entity, or a foundation?

6. Resource support: What will be provided in areas such as revenue cycle, facilities, and staffing (for example, flex options)?

7. Signage: For proper Medicare billing, every sign and bill must reflect the practices' new ownership on day one.

Source: Kaufman, Hall & Associates, Inc.

For more information, see James Pizzo and Todd Fitz's "Are Your Physician-Integration Strategies Sustainable?", hfm, November, 2012

Publication Date: Thursday, November 01, 2012

Login Required

If you are an existing member, please log in below. Username and password are required.



Forgot User Name?
Forgot Password?

If you are not an HFMA member and would like to access portions of our content for 30 days, please fill out the following.

First Name:

Last Name:


   Become an HFMA member instead