Dive Brief:
- Hospitals are acquiring physician practices at a fevered rate in many markets, in part to pre-themselves for ACO-style contracting.
- Before jumping in, physicians need to familiarize themselves with both the culture of hospital and the business model the hospital has in mind for the relationship; for example, in Texas and California, hospitals use foundations to bring docs on board, on a basis which isn't quite the same as traditional employment.
- Doctors may also want to consider whether they want to deal with the upheaval of a new employment situation if they're close to retirement,
Dive Insight:
While the idea of being acquired by a hospital may sound straightforward, there are contract considerations which could have a big impact on your experience. It's important for groups to do a careful analysis of what the hospital really expects, and how much autonomy you're giving up in the deal. Meanwhile, bear in mind that if a hospital wants to deal, there are many models for working with them, so you may have more choices than you think. In other words, if you don't like the proposed arrangement, come back with your own.