Trust is the prescription for hospital/physician relations under health care reform

Hospitals are reacting to health care reform by forming collaborative physician/hospital organizations and other ventures. The success of these new partnerships depends on what shape the reformed system takes and establishing trust between all players.

Precision maneuvers. A recent survey finds group practices are gearing up for reform and systems integration

Physician group practices, like other providers, are experiencing the rapid transition to a new health care environment dominated by managed care penetration, at-risk capitation, and reform-related changes. Just how quickly things are changing is revealed by a new nationwide survey, which was conducted by Hospitals & Health Networks, the American Group Practice Association, Alexandria, VA, and Hamilton/KSA, Atlanta.

The changing relationship between physicians and hospitals

There is a growing trend towards the unification of the practices of physicians under the umbrella of a hospital or group of hospitals. Prior to entering into such relationships, hospitals must test the relationship to be sure that it will not lead to a violation of the anti-kickback statute or, if the hospital is tax-exempt under section 501(c)(3), the prohibition against private inurement under the Internal Revenue Code. These are complex determinations and competent advice should be sought before entering into such relationships.

Provider alliances: key to healthcare reform

No matter what form healthcare reform takes, managed care is the future of health care, and the future is now. Hospitals and physicians will have to work together as partners and align incentives. It will be necessary to develop more primary care capability to adequately compete in the managed care arena. There will need to be increased coordination of managed care contracting between hospitals and physicians.