6 Ways for Community Hospitals to Align with Physicians in Competitive Markets

Independent community hospitals can feel at a competitive disadvantage as hospitals rush to align with physicians. In many markets, they have to compete with large hospital systems offering physicians large referral networks, says Mary C. Reed, vice president of Gateway Group in Cleveland, Ohio. Here, Ms. Reed offers six ways community hospitals can successfully reach out to physicians in competitive markets.

1. Be flexible with physicians. Being flexible by agreeing to an array of relationships means a lot to physicians when larger systems and larger competitors are insisting on rigid requirements. "When large systems require very defined relationships, it can put off all lot of doctors," Ms. Reed says. "They want individual attention by someone who understands their needs."

2. Know what your physicians are thinking. When physicians decide to align with another hospital administrators are often surprised. "How come they never told me?" they ask. "If they really know their physicians, they would not be so surprised," Ms. Reed says.   

3. Improve physician-relationship management. "Some administrators think of physician relationship management as stopping to have a chat with the doctor in the hallway," Ms. Reed says. "Administrators need to go to make a point of going the physician's office to talk." After all, with greater use of hospitalists, many primary care physicians don't even go to the hospital any more.

4. Divide up physician-outreach. Each executive in the C-suite should visit 3-5 physicians each. Middle-managers can also share in assignments. Categorize physicians to prioritize outreach. For example, "senior statesmen" have less patient volume but maintain a lot of influence with peers; "most active" physicians are responsible for the most admissions; and "up and comers" are younger physicians who will gain in prominence.

5. Sign co-management agreements.
"Co-management agreements are a great way to align physicians who do not want to be employed by the hospital," Ms. Reed says. Both specialists and primary care physicians can sign co-management agreements. They have to be paid for actual work, but work can include such duties as writing up protocols for establishing a physician-integration model. Contracts tend to last two years with annual renewal after that.

6. Establish an MSO. "A management service organization is an inexpensive way to work closely with physicians and win their loyalty," Ms. Reed says. In an MSO the hospital and physician practices share expenses for functions such as purchasing supplies, practice management services and some aspects of managed-care contracting.

7. Help physicians set up EHRs. Helping physicians set up electronic health records is a good way to bring physicians into to your system. "EHRs can be very expensive for physicians, so they will appreciate a little help," Ms. Reed says. The physician will be become part of the hospital's own EMR network. Hospitals are allowed to subsidize physicians' EMR purchases up to a certain percentage of the cost.  

Learn more about Gateway Group.

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