Practice-Hospital Integration Services
A Storm is Coming to Cardiology Private Practice
As a result of the Federal Register which was published in July of 2009 it became apparent that cardiologist are facing a coming storm. There are dramatic reductions in reimbursement for diagnostic imaging services and other key services provided by cardiologists. As a result of substantially declining reimbursements and increasing operating expenses, cardiologist are facing new financial pressures that are causing them to rethink their future.
Cardiologists Have Three Options
First, many cardiology groups may chose to remain independent. Second, cardiology groups have options to partially integrate through professional services agreements with their local hospital system. Third, private practices have the option to fully integrate with a hospital system.
The Implications of Full Integration with a Hospital
As it relates to full integration there are three primary elements. The first element is compensation, what does a cardiologist get paid once they become part of a hospital system? A second element to consider is the practice purchase price. The third element is governance and decision making. How are decisions made in a post-integration practice? Cardiologists are very interested in how those decisions will be made and how much of their autonomy they will have to give up.
What an Integration Might Look Like
Here’s what an integration might look like. During the pre-integration phase of the engagement, a practice assessment is completed. Next strategic alternatives are explored and a formal strategy is put in place and executed. Paragon can facilitate the entire process from assessment to post-integration. We can also help the practice and the service line management with the implementation of the strategies that need to occur in a post-integrated group.