Spring 2016 issue of Horizons

population is expected to be more effective. Hospitals and other large groups can employ physicians across many disciplines and, in theory, should be able to communicate more effectively than if they were fragmented across numerous private practices. Admittedly, there is a learning curve in developing effective compensation models in this new approach. This is even more challenging because of frequent regulation changes impacting the health delivery system. How can physicians be appropriately compensated for keeping a population healthier? By moving to a gain-sharing approach where quality and cost metrics are measured and drive compensation. In these models, providers have an incentive to keep costs down, increasing the net gain- share available for distribution. One thing is clear, it is a rapidly changing environment in which new employment models are continuously being developed and implemented. It is hard to predict the outcome, but it is safe to say that the delivery of, and payment for, healthcare will forever be altered by these changes.

the ability to meet quality benchmarks. By employing physicians, hospitals are hoping to achieve higher quality and improve reimbursement rates. In addition, some studies indicate inpatient volumes have plateaued, increasing competition for patients. Employing a core group of physicians may help with referrals, all while being cognizant of Stark Law. These physicians are positioned to help hospitals achieve strategic objectives in the changing healthcare landscape. Healthcare delivery is moving from a fee-for- service model to a fee-for-value or quality model. It is anticipated that this will be accomplished through managing the health of a given population. Providers will take on the risk of a population and have incentive to keep that population as healthy as possible. In the old model, they would gain by seeing patients more frequently and providing more service. The move away from the old model is a seismic shift. Efficiencies Having a core group of employed physicians managing the health needs of a

RubinBrown’s Healthcare Group RubinBrown’s Healthcare Services Group provides a broad array of services to a diverse group of clients in the healthcare industry, including hospitals, physician practices, multi-site medical groups and not-for-profit organizations.

Greg Osborn, CPA, CGMA — Denver Partner Healthcare Services Group 303.952.1250 greg.osborn@rubinbrown.com

Tom Zetlmeisl, CPA, CFE, CFF, CGMA — St. Louis

Partner-In-Charge Healthcare Services Group 314.290.3395 tom.zetlmeisl@rubinbrown.com

Kristin Bettorf, CPA — St. Louis Partner & Vice Chair Healthcare Services Group 314.290.3416 kristin.bettorf@rubinbrown.com

Mary Ramm, CPA — Kansas City Partner Healthcare Services Group 913.499.4406 mary.ramm@rubinbrown.com

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