1. Requirements for participation. According to Bob Gift, a director at IMA Consulting in Chadds Ford, Pa., co-management arrangements can decide participation based on various factors. For example, the hospital might put out an invitation for every physician to participate, but make it clear that the hospital expects a meeting attendance rate of 80 percent. The hospital might also limit participation to physicians who are active members of the medical staff rather than consulting members. Determining requirements for participation depends on what the hospital is trying to achieve, he says. “If [the hospital is] trying to get a broader base of physicians in the service line, it can open up participation to a broader group,” he says.
Requirements for participation ensure that those physicians participating in service line management — and being compensated for that participation — are those who actively want to develop the service line and improve quality of care. Mr. Gift says hospitals should involve physician partners in designing the criteria for participation, as they will most likely know which requirements are reasonable.
From “5 Steps to Develop a Co-Management Agreement for a Hospital Service Line.”
2. Duties cannot overlap with other management services. “The duties the contract assigns to the management company cannot also be assigned to others at the hospital, whether through medical directorships or an outside management company,” Scott Safriet, a principal at Healthcare Appraisers says. Therefore, the hospital needs to review its compensation arrangements to make sure co-management services and associated payments do not overlap with other services or payments.
From “10 Things to Know About Co-Management Relationships in Coversions of ASCs to HOPDs.”
3. Sign up with a third party. To make the deal work, the hospital typically needs an outside consultant who can be a neutral a third party. “Even if the hospital is paying the consultant, that person should be working for both parties to make it a true joint venture,” Robert Zasa, managing partner of ASD Management, says.
From “10 Best Practices for Hospital-Physician Joint Ventures on ASCs.”
