The most successful working relationships between hospitals/systems and physicians create value for both parties and more closely align medical staff members. Craig Holm with Health Strategies & Solutions, Inc., identifies five key factors in establishing such relationships:
1. Establish a context for business relationships. Develop guidelines describing overall purpose and strategy, such as positioning hospital and medical staff to proactively expand markets, or measuring and monitoring results to ensure that performance targets are met.
2. Narrow the options for formal business relationships based on fit and financial capacity. There is no one-size-fits-all approach. Options need to be consistent with the strategic priorities of the hospital and the business planning objectives of individual practices. Consider ROI, economic value, how capital investments will be shared, the amount of administrative time that will be required.
3. Develop guidelines to help select physicians to work with. These might include precedent, market position, quality of partners, and consequences of inaction.
4. Focus on implementing two to three business relationships at first, adding others as needed. Don’t try to do too much – know what the organizations capabilities are and work within them.
5. Continuously evaluate relationships. Keep a close watch out for developments that might warrant a change, such as changes in reimbursement, the regulatory environment, or competitor initiatives.
Adapted from Strategies & Solutions, February 2007. ©Health Strategies & Solutions, Inc. Used with permission