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Lyu PF, Chernew ME, McWilliams JM. Soft Consolidation In Medicare ACOs: Potential For Higher Prices Without Mergers Or Acquisitions. Health Aff (Millwood) 2021; 40:979-988. [PMID: 34097521 DOI: 10.1377/hlthaff.2020.02449] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/05/2022]
Abstract
Antitrust guidance specifies that participation in Medicare accountable care organizations (ACOs) is sufficient to meet clinical integration standards for separately owned providers to jointly negotiate with insurers. Accordingly, ACO participation may facilitate price increases through a less conventional, "softer" consolidation that would not be categorically challenged as price fixing. Using commercial claims and data on health system membership and ACO participation, we found some abrupt, large price increases for independent primary care practices that joined health system-led ACOs but were not acquired by systems. These price jumps were rare, however, increasing prices by just 4 percent, on average, among all independent practices in system-led ACOs. Additional analyses suggested minimal increases in health systems' primary care prices or market shares from ACO contracting. Thus, the price jumps were more consistent with an extension of existing pricing power from systems to some independent practices than with a major expansion of system market power. Nevertheless, the potential for growth of these arrangements through ACOs argues for closer monitoring and evaluation.
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Affiliation(s)
- Peter F Lyu
- Peter F. Lyu is a doctoral candidate in health policy at Harvard University, in Cambridge, Massachusetts
| | - Michael E Chernew
- Michael E. Chernew is the Leonard D. Schaeffer Professor of Health Care Policy in the Department of Health Care Policy, Harvard Medical School, in Boston, Massachusetts
| | - J Michael McWilliams
- J. Michael McWilliams is the Warren Alpert Foundation Professor of Health Care Policy in the Department of Health Care Policy at Harvard Medical School and a professor of medicine and general internist at Brigham and Women's Hospital, in Boston, Massachusetts
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Ridgely MS, Buttorff C, Wolf LJ, Duffy EL, Tom AK, Damberg CL, Scanlon DP, Vaiana ME. The importance of understanding and measuring health system structural, functional, and clinical integration. Health Serv Res 2020; 55 Suppl 3:1049-1061. [PMID: 33284525 PMCID: PMC7720708 DOI: 10.1111/1475-6773.13582] [Citation(s) in RCA: 10] [Impact Index Per Article: 2.5] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/30/2022] Open
Abstract
OBJECTIVE We explore if there are ways to characterize health systems-not already revealed by secondary data-that could provide new insights into differences in health system performance. We sought to collect rich qualitative data to reveal whether and to what extent health systems vary in important ways across dimensions of structural, functional, and clinical integration. DATA SOURCES Interviews with 162 c-suite executives of 24 health systems in four states conducted through "virtual" site visits between 2017 and 2019. STUDY DESIGN Exploratory study using thematic comparative analysis to describe factors that may lead to high performance. DATA COLLECTION We used maximum variation sampling to achieve diversity in size and performance. We conducted, transcribed, coded, and analyzed in-depth, semi-structured interviews with system executives, covering such topics as market context, health system origin, organizational structure, governance features, and relationship of health system to affiliated hospitals and POs. PRINCIPAL FINDINGS Health systems vary widely in size and ownership type, complexity of organization and governance arrangements, and ability to take on risk. Structural, functional, and clinical integration vary across systems, with considerable activity around centralizing business functions, aligning financial incentives with physicians, establishing enterprise-wide EHR, and moving toward single signatory contracting. Executives describe clinical integration as more difficult to achieve, but essential. Studies that treat "health system" as a binary variable may be inappropriately aggregating for analysis health systems of very different types, at different degrees of maturity, and at different stages of structural, functional, and clinical integration. As a result, a "signal" indicating performance may be distorted by the "noise." CONCLUSIONS Developing ways to account for the complex structures of today's health systems can enhance future efforts to study systems as complex organizations, to assess their performance, and to better understand the effects of payment innovation, care redesign, and other reforms.
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Affiliation(s)
| | | | - Laura J. Wolf
- Center for Health Care and Policy ResearchThe Pennsylvania State UniversityUniversity ParkPennsylvaniaUSA
| | - Erin Lindsey Duffy
- RAND CorporationSanta MonicaCaliforniaUSA
- Leonard D. Schaeffer Center for Health Policy and EconomicsUniversity of Southern CaliforniaLos AngelesCaliforniaUSA
| | | | | | - Dennis P. Scanlon
- Center for Health Care and Policy ResearchThe Pennsylvania State UniversityUniversity ParkPennsylvaniaUSA
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Abstract
BACKGROUND There is a concern that the Oncology Care Model (OCM), a voluntary bundled payment program, may incentivize mergers and acquisitions among physician practices leading to reduced competition and price increases. These concerns are heightened if OCM is preferentially adopted in competitive health care markets because it could result in reduced competition, but little is known about the characteristics of markets where OCM is adopted. OBJECTIVE To measure the association between regional market competition among medical oncologists with the initial adoption of OCM. RESEARCH DESIGN The Herfindahl-Hirschman Index (HHI), a measure of competition, was calculated for hospital referral regions (HRRs) using secondary data from the Centers for Medicare and Medicaid Services. The relationship between HHI and OCM adoption was assessed using a 2-part regression model adjusting for the market-level number of practices, physician density, average practice size, sociodemographic characteristics, and medical resources. A count model on all HRRs was also estimated to assess an overall effect. SUBJECTS A total of 10,788 physicians in 3,537 practices who billed Medicare for oncology services in 2015. RESULTS OCM was adopted in 114 (37%) of the 306 HRRs. We found that practices in competitive health care markets were more likely to adopt OCM than in noncompetitive markets. Two-part regression analysis indicated a nonlinear relationship between HHI and OCM adoption. Average practice size, number of practices in an HRR, and the hospital bed rate were positively associated with adoption, whereas the rate of full-time equivalent hospital employees to 1000 residents was negatively associated with adoption. CONCLUSIONS OCM adoption was higher in HRRs with greater competition. Careful monitoring of market-level changes among OCM adopters should be undertaken to ensure that the benefits of the OCM outweigh the negative consequences of possible changes in competition.
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Heeringa J, Mutti A, Furukawa MF, Lechner A, Maurer KA, Rich E. Horizontal and Vertical Integration of Health Care Providers: A Framework for Understanding Various Provider Organizational Structures. Int J Integr Care 2020; 20:2. [PMID: 31997980 PMCID: PMC6978994 DOI: 10.5334/ijic.4635] [Citation(s) in RCA: 31] [Impact Index Per Article: 7.8] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Journal Information] [Subscribe] [Scholar Register] [Received: 11/27/2018] [Accepted: 12/11/2019] [Indexed: 11/20/2022] Open
Abstract
INTRODUCTION Current U.S. policy and payment initiatives aim to encourage health care provider accountability for population health and higher value care, resulting in efforts to integrate providers along the continuum. Providers work together through diverse organizational structures, yet evidence is limited regarding how to best organize the delivery system to achieve higher value care. METHODS In 2016, we conducted a narrative review of 10 years of literature to identify definitional components of key organizational structures in the United States. A clear accounting of common organizational structures is foundational for understanding the system attributes that are associated with higher value care. RESULTS We distinguish between structures characterized by the horizontal integration of providers delivering similar services and the vertical integration of providers fulfilling different functions along the care continuum. We characterize these structures in terms of their origins, included providers and services, care management functions, and governance. CONCLUSIONS AND DISCUSSION Increasingly, U.S. policymakers seek to promote provider integration and coordination. Emerging evidence suggests that organizational structures, composition, and other characteristics influence cost and quality performance. Given current efforts to reform the U.S. delivery system, future research should seek to systematically examine the role of organizational structure in cost and quality outcomes.
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Abstract
Introduction As hospitals and physician organizations increasingly vertically integrate, there is an important opportunity to use health systems to improve performance. Prior research has largely relied on secondary data sources, but little is known about how health systems are organized "on the ground" and what mechanisms are available to influence physician practice at the front line of care. Methods We collected in-depth information on eight health systems through key informant interviews, descriptive surveys, and document review. Qualitative data were systematically coded. We conducted analyses to identify organizational structures and mechanisms through which health systems influence practice. Results As expected, we found that health systems vary on multiple dimensions related to organizational structure (e.g., size, complexity) which reflects history, market and mission. With regard to levers of influence, we observed within-system variation both in mechanisms (e.g., employment of physicians, system-wide EHR, standardization of service lines) and level of influence. Concepts such as "core" versus "peripheral" were more salient than "ownership" versus "contract." Discussion Data from secondary sources can help identify and map health systems, but they do not adequately describe them or the variation that exists within and across systems. To examine the degree to which health systems can influence performance, more detailed and nuanced information on health system characteristics is necessary. Conclusion The mixed-methods data accrual approach used in this study provides granular qualitative data that enables researchers to describe multi-layered health systems, grasp the context in which they operate, and identify the key drivers of performance.
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Casalino LP, Chenven N. Independent practice associations: Advantages and disadvantages of an alternative form of physician practice organization. HEALTHCARE-THE JOURNAL OF DELIVERY SCIENCE AND INNOVATION 2016; 5:46-52. [PMID: 27618668 DOI: 10.1016/j.hjdsi.2016.08.003] [Citation(s) in RCA: 2] [Impact Index Per Article: 0.3] [Reference Citation Analysis] [Abstract] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 11/25/2015] [Revised: 08/12/2016] [Accepted: 08/22/2016] [Indexed: 11/18/2022]
Abstract
BACKGROUND Value-based purchasing (VBP) favors provider organizations large enough to accept financial risk and develop care management infrastructure. Independent Practice Associations (IPAs) are a potential alternative for physicians to becoming employed by a hospital or large medical group. But little is known about IPAs. METHODS We selected four IPAs that vary in location, structure, and strategy, and conducted interviews with their president and medical director, as well as with a hospital executive and health plan executive familiar with that IPA. RESULTS The IPAs studied vary in size and sophistication, but overall are performing well and are highly regarded by hospital and health plan executives. IPAs can grow rapidly without the cost of purchasing and operating physician practices and make it possible for physicians to remain independent in their own practices while providing the scale and care management infrastructure to make it possible to succeed in VBP. However, it can be difficult for IPAs to gain cooperation from hundreds to thousands of independent physicians, and the need for capital for growth and care management infrastructure is increasing as VBP becomes more prevalent and more demanding. CONCLUSIONS Some IPAs are succeeding at VBP. As VBP raises the performance bar, IPAs will have to demonstrate that they can achieve results equal to more highly capitalized and tightly structured large medical groups and hospital-owned practices. IMPLICATIONS Physicians should be aware of IPAs as a potential option for participating in VBP. Payers are aware of IPAs; the Medicare ACO program and health insurer ACO programs include many IPAs.
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Affiliation(s)
- Lawrence P Casalino
- Division of Health Policy and Economics, Department of Healthcare Policy and Research, Weill Cornell Medical College, 402 E. 67th St. Room LA 217, New York, NY 10065-6304, United States
| | - Norman Chenven
- President and Chief Executive Officer of Covenant Management Systems, 515 Seton Center Parkway, Suite 215, Austin, TX 78759, United States
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No Significant Association between Anesthesia Group Concentration and Private Insurer Payments in the United States. Anesthesiology 2015; 123:507-14. [DOI: 10.1097/aln.0000000000000779] [Citation(s) in RCA: 3] [Impact Index Per Article: 0.3] [Reference Citation Analysis] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/25/2022]
Abstract
Abstract
Background:
Markets for physician services are becoming increasingly concentrated, with many areas being dominated by a few groups. Antitrust authorities are concerned that increasing concentration will lead to inappropriately high payments for physician services from private insurers. The authors examined the association between market concentration and private insurer payments for anesthesia services.
Methods:
The authors obtained data on average payments from private insurers for five commonly used anesthesia Current Procedure Terminology codes for physicians located in 229 counties in the United States between 2002 and 2010. The authors calculated a measure of market concentration (the Herfindahl–Hirschman Index [HHI]) for anesthesiologists in each county using Medicare claims data. The authors then estimated the association between market concentration and private insurer payments using a difference-in-differences approach to minimize confounding.
Results:
Private insurer payments to anesthesiologists in more concentrated markets were not significantly different from payments in less concentrated markets. Compared with the 25% of counties with the least concentration (counties with an HHI in the 0th to 25th percentile), payments in counties in the 25th to 50th percentile of HHI were approximately 0.51% less (95% CI, −2.3 to 1.3%, P = 0.95), whereas payments in counties in the 50th to 75th percentile of HHI were approximately 2.8% less (95% CI, −6.7 to 1.4%, P = 0.41) and payments in counties in the 75th to 100th percentile were approximately 3.1% less (95% CI, −8.1 to 1.2%, P = 0.32).
Conclusion:
Increasing market concentration of anesthesia groups is not associated with significantly greater payments from private insurers.
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Sun E, Baker LC. Concentration In Orthopedic Markets Was Associated With A 7 Percent Increase In Physician Fees For Total Knee Replacements. Health Aff (Millwood) 2015; 34:916-21. [DOI: 10.1377/hlthaff.2014.1325] [Citation(s) in RCA: 19] [Impact Index Per Article: 2.1] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/05/2022]
Affiliation(s)
- Eric Sun
- Eric Sun ( ) is an instructor in anesthesiology, pain, and perioperative medicine at the Stanford University School of Medicine, in California
| | - Laurence C. Baker
- Laurence C. Baker is a professor in health research and policy at Stanford University and a research associate at the National Bureau of Economic Research in Cambridge, Massachusetts
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Kleiner SA, White WD, Lyons S. Market power and provider consolidation in physician markets. INTERNATIONAL JOURNAL OF HEALTH ECONOMICS AND MANAGEMENT 2015; 15:99-126. [PMID: 27878669 DOI: 10.1007/s10754-014-9160-y] [Citation(s) in RCA: 9] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 07/18/2014] [Accepted: 12/11/2014] [Indexed: 06/06/2023]
Abstract
Physician services comprise a substantial share of total health care spending, and the price of health care services has been cited as a key contributor to the disproportionately high rate of health care spending in the US. However, despite a large literature analyzing market power in the hospital and insurance industries, less is known about the extent to which physicians exercise market power. In this study we make use of a private health insurance claims data set to analyze physician market power for two specialties within three mid-sized US metropolitan areas. Using a method developed for hospital competition analysis, we estimate measures of consumer willingness-to-pay for physician practices within each of these markets and relate these to the prices paid to these practices for a set of physician services. Our results are suggestive of the presence of market power in the markets that we analyze. We simulate physician practice mergers for the two largest practices in each market for each specialty analyzed. Results suggest that practice mergers could result in price increases deemed significant by antitrust authorities in some markets but not in others.
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Affiliation(s)
- Samuel A Kleiner
- Cornell University, NBER, 108 Martha Van Rensselaer Hall, Ithaca, NY, 14853, USA.
| | - William D White
- Cornell University, 3301A Martha Van Rensselaer Hall, Ithaca, NY, 14853, USA
| | - Sean Lyons
- Congressional Budget Office, Ford House Office Building, 4th Flr. Second and D Streets, SW, Washington, DC, 20515-6925, USA
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Conrad DA, Grembowski D, Hernandez SE, Lau B, Marcus-Smith M. Emerging lessons from regional and state innovation in value-based payment reform: balancing collaboration and disruptive innovation. Milbank Q 2014; 92:568-623. [PMID: 25199900 DOI: 10.1111/1468-0009.12078] [Citation(s) in RCA: 42] [Impact Index Per Article: 4.2] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 12/19/2022] Open
Abstract
CONTEXT In recent decades, practitioners and policymakers have turned to value-based payment initiatives to help contain spending on health care and to improve the quality of care. The Robert Wood Johnson Foundation funded 7 grantees across the country to design and implement value-based, multistakeholder payment reform projects in 6 states and 3 regions of the United States. METHODS As the external evaluator of these projects, we reviewed documents, conducted Internet searches, interviewed key stakeholders, cross-validated factual and narrative interpretation, and performed qualitative analyses to derive cross-site themes and implications for policy and practice. FINDINGS The nature of payment reform and its momentum closely reflects the environmental context of each project. Federal legislation such as the Patient Protection and Affordable Care Act and federal and state support for the development of the patient-centered medical home and accountable care organizations encourage value-based payment innovation, as do local market conditions for payers and providers that combine a history of collaboration with independent innovation and experimentation by individual organizations. Multistakeholder coalitions offer a useful facilitating structure for galvanizing payment reform. But to achieve the objectives of reduced cost and improved quality, multistakeholder payment innovation must overcome such barriers as incompatible information systems, the technical difficulties and transaction costs of altering existing billing and payment systems, competing stakeholder priorities, insufficient scale to bear population health risk, providers' limited experience with risk-bearing payment models, and the failure to align care delivery models with the form of payment. CONCLUSIONS From the evidence adduced in this article, multistakeholder, value-based payment reform requires a trusted, widely respected "honest broker" that can convene and maintain the ongoing commitment of health plans, providers, and purchasers. Change management is complex and challenging, and coalition governance requires flexibility and stable leadership, as market conditions and stakeholder engagement and priorities shift over time. Another significant facilitator of value-based payment reform is outside investment that enables increased investment in human resources, information infrastructure, and care management by provider organizations and their collaborators. Supportive community and social service networks that enhance population health management also are important enablers of value-based payment reform. External pressure from public and private payers is fueling a "burning bridge" between the past of fee-for-service payment models and the future of payments based on value. Robust competition in local health plan and provider markets, coupled with an appropriate mix of multistakeholder governance, pressure from organized purchasers, and regulatory oversight, has the potential to spur value-based payment innovation that combines elements of "reformed" fee-for-service with bundled payments and global payments.
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11
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Casalino LP, Wu FM, Ryan AM, Copeland K, Rittenhouse DR, Ramsay PP, Shortell SM. Independent practice associations and physician-hospital organizations can improve care management for smaller practices. Health Aff (Millwood) 2014; 32:1376-82. [PMID: 23918481 DOI: 10.1377/hlthaff.2013.0205] [Citation(s) in RCA: 33] [Impact Index Per Article: 3.3] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/05/2022]
Abstract
Pay-for-performance, public reporting, and accountable care organization programs place pressures on physicians to use health information technology and organized care management processes to improve the care they provide. But physician practices that are not large may lack the resources and size to implement such processes. We used data from a unique national survey of 1,164 practices with fewer than twenty physicians to provide the first information available on the extent to which independent practice associations (IPAs) and physician-hospital organizations (PHOs) might make it possible for these smaller practices to share resources to improve care. Nearly a quarter of the practices participated in an IPA or a PHO that accounted for a significant proportion of their patients. On average, practices participating in these organizations provided nearly three times as many care management processes for patients with chronic conditions as nonparticipating practices did (10.4 versus 3.8). Half of these processes were provided only by IPAs or PHOs. These organizations may provide a way for small and medium-size practices to systematically improve care and participate in accountable care organizations.
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Affiliation(s)
- Lawrence P Casalino
- Department of Public Health, Weill Cornell Medical College, New York City, NY, USA.
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12
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The road ahead: practice integration in gastroenterology. Clin Gastroenterol Hepatol 2013; 11:589-92. [PMID: 23684179 DOI: 10.1016/j.cgh.2013.03.008] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Submit a Manuscript] [Subscribe] [Scholar Register] [Indexed: 02/07/2023]
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13
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Berenson RA, Ginsburg PB, Christianson JB, Yee T. The Growing Power Of Some Providers To Win Steep Payment Increases From Insurers Suggests Policy Remedies May Be Needed. Health Aff (Millwood) 2012; 31:973-81. [DOI: 10.1377/hlthaff.2011.0920] [Citation(s) in RCA: 47] [Impact Index Per Article: 3.9] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/05/2022]
Affiliation(s)
- Robert A. Berenson
- Robert A. Berenson ( ) is a senior consulting researcher at the Center for Studying Health System Change and an Institute Fellow at the Urban Institute, in Washington, D.C
| | - Paul B. Ginsburg
- Paul B. Ginsburg is president of the Center for Studying Health System Change, in Washington, D.C
| | - Jon B. Christianson
- Jon B. Christianson is the James A. Hamilton Chair in Health Policy and Management at the University of Minnesota School of Public Health and a professor in the school’s Division of Health Policy and Management, in Minneapolis
| | - Tracy Yee
- Tracy Yee is a health researcher at the Center for Studying Health System Change
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Shields MC, Patel PH, Manning M, Sacks L. A Model For Integrating Independent Physicians Into Accountable Care Organizations. Health Aff (Millwood) 2011; 30:161-72. [DOI: 10.1377/hlthaff.2010.0824] [Citation(s) in RCA: 33] [Impact Index Per Article: 2.5] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/05/2022]
Affiliation(s)
- Mark C. Shields
- Mark C. Shields ( ) is vice president for medical management of Advocate Health Care and senior medical director of Advocate Physician Partners, in Mt. Prospect, Illinois
| | - Pankaj H. Patel
- Pankaj H. Patel is medical director of quality improvement and chair of the QI and Credentaling Committee for Advocate Physician Partners, in Mt. Prospect
| | - Martin Manning
- Martin Manning is president of Advocate Physician Partners, in Oak Brook, Illinois
| | - Lee Sacks
- Lee Sacks is executive vice president and chief medical officer of Advocate Health Care and chief executive officer of Advocate Physician Partners, in Oak Brook
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15
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Berenson RA, Ginsburg PB, Kemper N. Unchecked Provider Clout In California Foreshadows Challenges To Health Reform. Health Aff (Millwood) 2010; 29:699-705. [DOI: 10.1377/hlthaff.2009.0715] [Citation(s) in RCA: 54] [Impact Index Per Article: 3.9] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/05/2022]
Affiliation(s)
- Robert A. Berenson
- Robert A. Berenson ( ) is a senior consulting researcher at the Center for Studying Health System Change and an Institute Fellow in the Health Policy Center at the Urban Institute, both in Washington, D.C
| | - Paul B. Ginsburg
- Paul B. Ginsburg is president of the Center for Studying Health System Change
| | - Nicole Kemper
- Nicole Kemper is a former health research analyst at the Center for Studying Health System Change
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Abstract
Health care financing and delivery reform seems to be under way. Reform will in all likelihood originate with Congress but may also come from the states or even the private sector. Federal law, however, limits states' options for reform, while state law constrains federal reform, and both state and federal law impede private innovation. Congressional action could facilitate state reform. Alternatively, federal preemption of state law may be necessary for federal reform. If neither Congress nor the states act, action by federal agencies could support private innovation. In any event, law reform is a necessary condition for health reform.
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Affiliation(s)
- Timothy S Jost
- Washington and Lee University School of Law, Lexington, Virginia, USA.
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17
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Casalino LP, November EA, Berenson RA, Pham HH. Hospital-Physician Relations: Two Tracks And The Decline Of The Voluntary Medical Staff Model. Health Aff (Millwood) 2008; 27:1305-14. [DOI: 10.1377/hlthaff.27.5.1305] [Citation(s) in RCA: 36] [Impact Index Per Article: 2.3] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/05/2022]
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18
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Burns LR, Muller RW. Hospital-physician collaboration: landscape of economic integration and impact on clinical integration. Milbank Q 2008; 86:375-434. [PMID: 18798884 PMCID: PMC2690342 DOI: 10.1111/j.1468-0009.2008.00527.x] [Citation(s) in RCA: 103] [Impact Index Per Article: 6.4] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 12/20/2022] Open
Abstract
CONTEXT Hospital-physician relationships (HPRs) are an important area of academic research, given their impact on hospitals' financial success. HPRs also are at the center of several federal policy proposals such as gain sharing, bundled payments, and pay-for-performance (P4P). METHODS This article analyzes the HPRs that focus on the economic integration of hospitals and physicians and the goals that HPRs are designed to achieve. It then reviews the literature on the impact of HPRs on cost, quality, and clinical integration. FINDINGS The goals of the two parties in HPRs overlap only partly, and their primary aim is not reducing cost or improving quality. The evidence base for the impact of many models of economic integration is either weak or nonexistent, with only a few models of economic integration having robust effects. The relationship between economic and clinical integration also is weak and inconsistent. There are several possible reasons for this weak linkage and many barriers to further integration between hospitals and physicians. CONCLUSIONS Successful HPRs may require better financial conditions for physicians, internal changes to clinical operations, application of behavioral skills to the management of HPRs, changes in how providers are paid, and systemic changes encompassing several types of integration simultaneously.
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Affiliation(s)
- Lawton Robert Burns
- Wharton Center for Health Management and Economics, Wharton School, University of Pennsylvania, Philadelphia, PA 19104-6218, USA.
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Fisher ES, Staiger DO, Bynum JPW, Gottlieb DJ. Creating accountable care organizations: the extended hospital medical staff. Health Aff (Millwood) 2006; 26:w44-57. [PMID: 17148490 PMCID: PMC2131738 DOI: 10.1377/hlthaff.26.1.w44] [Citation(s) in RCA: 197] [Impact Index Per Article: 10.9] [Reference Citation Analysis] [Abstract] [MESH Headings] [Grants] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/05/2022]
Abstract
Many current policies and approaches to performance measurement and payment reform focus on individual providers; they risk reinforcing the fragmented care and lack of coordination experienced by patients with serious illness. In this paper we show that Medicare beneficiaries receive most of their care from relatively coherent local delivery systems comprising physicians and the hospitals where they work or admit their patients. Efforts to create accountable care organizations at this level--the extended hospital medical staff--deserve consideration as a potential means of improving the quality and lowering the cost of care.
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Affiliation(s)
- Elliott S Fisher
- Dartmouth Medical School and the Center for the Evaluative Clinical Sciences, Hanover, New Hampshire, USA.
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