Hospital Co Management Agreements

(iii) Should be defined taking into account the effective performance of tasks and incentives for co-management. [4] It therefore becomes very important to determine whether there is an “overlap” between the duties and responsibilities of the Director(s) and the Medical Director(s). Unfortunately, in our experience, there is generally a considerable degree of overlap in administrative and management tasks required by the manager and medical directors. Therefore, medical directors responsible for performing a subset of management tasks must be compensated by the basic management fee paid to the field unit. The emergence of incentive models for health care delivery has contributed to the creation of a wide range of opportunities for partnerships between hospitals and physicians. One of the most promising forms of such partnerships is the creation of a co-management company to manage a specific hospital service line. With increasing popularity, these types of agreements are becoming more and more complex, which leads to the emergence of new themes that must be taken into account in the evaluation process. The execution of a co-management agreement does not change the ownership or overall responsibility of the service line; The final authority and responsibility remain in the hospital. From the hospital`s point of view, therefore, the objective should be to assume only those tasks that complement and complement the management services provided by the hospital staff. 1) A new joint venture (e.g. B an LLC) is created, consisting of both the hospital and the participating physicians as investors.

See Figure 1. [12] From our perspective, we do not believe that a co-service management company should be unfairly penalized in terms of administrative costs simply because the hospital has a high percentage of bad payers in its patient population. The workload for the efficient management of service lines of comparable size in terms of patient volume and procedures implemented is similar and does not depend on the cost mix. The co-management structure described above is intended to ensure the active participation of the hospital and physicians in the provision of online management services (i.e. the online co-management agreement), while the structure in Diagram 2 illustrates the management company as the exclusive property of the physicians (i.e. the online service management agreement). The main difference between the two (with the exception of the obvious issues of ownership, governance and capitalization) is that, in the co-management structure, the resulting division of responsibilities within co-management (i.e.: Each party`s contribution to managing the delivery of management services) is approximately proportional to the percentages of actual ownership. . .

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