Although co-management agreements can be a lucrative business arrangement for both parties, the driving force behind operating a co-management agreement should not be money, said Mr. Katz. Rather, co-management agreements should rely on a commitment to achieving mutually agreed-upon metrics.
“Physicians want control, but their focus should be on quality and efficiency. Then the rewards will follow,” Mr. Katz said. “Hospitals, on the other hand, should be focused on developing the partnership with physicians and not making it adversarial. This will naturally lead to improved economic viability.”
Mr. Katz pointed co-management arrangements must comply with legal regulations on fair market valuation of service line programs and fee structures. Success will also depend on physician champions, who can act as liaisons between their peers and the partnering hospital.
Sample metrics that physicians and hospitals can use for their co-management arrangements include patient experience, SCIP, OR start time, ER coverage, demand matching and process improvement. Achieving excellence through these measures can help lay the groundwork for “bigger and better things,” such as accountable care organizations, Mr. Katz said.
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