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Physician/Hospital Alignment

Employment agreements in the reform era


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Health care reform and other market dynamics are increasing the need for more effective alignment between physicians and hospitals. New incentive models such as Accountable Care Organizations (ACOs), Pay 4 Performance, quality programs, and gain sharing will likely change the way hospitals and physicians work together and are aligned in the future.

One of the most prevalent emerging models is physician employment by hospitals and health systems. A new paper from Deloitte, “Physician/Hospital Alignment: Employment agreements in the reform era,” discusses the changing dynamics of physician/hospital relationships; among them, physician employee agreements. The paper:

  • Examines the market forces that are driving heightened physician/hospital alignment;
  • Reviews the range of affiliation and integration options, from traditional voluntary staff models to joint ventures, ACOs, and physician employment;
  • Offers practical tips for hospitals and physicians to consider during the employment contracting process, including:
  • Legal & compliance basics
  • Compensation and productivity models
  • Duties and responsibilities
  • Special considerations for medical directors, department chairs, and division chiefs
  • Maintaining physician relationships through the contracting process.

About Deloitte
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

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