"Side-by-side" alliances, also known as embedded arrangements, are a new method being of physician alignment that hospitals and health systems should consider, according to an American Medical News report.
In a side-by-side alliance, the hospital or health system shares a physician with a practice. The hospital can hire more physicians without buying a practice or starting one from scratch. The alliance, in turn, offers the practice the financial stability of a relationship with a hospital, yet allows the practice to remain independent. Embedded arrangements solve recruiting challenges for both parties, according to the report. The hospital increases their physician numbers for patients and a practice can utilize a physician without recruitment hassles.
While the arrangement seems ideal, not many hospitals and practices are currently beginning such alliances. Analysts believe the reason is because side-by-side relationships can be difficult.
The practice and the hospital must maintain a close relationship to ensure both parties are benefitting without encountering legal problems. The hospital and the practice need to understand the parameters of the arrangement and identify who is in charge of certain decisions. Discussions should include the following issues: record keeping, HIPAA compliance, EMR system compatibility, contract stipulations and billing, among others. Agreeing on specifics in the beginning is essential for eliminating conflicts later.
Despite the hard work upfront, the relationship could offer both parties financial stability. If side-by-side alliances succeed, they have potential for the long term or could act as a test run for the practice before selling to a hospital, according to the report. The alliance could also be a starting point for the hospital-employed physician to become partner or buy the practice themselves.
In a side-by-side alliance, the hospital or health system shares a physician with a practice. The hospital can hire more physicians without buying a practice or starting one from scratch. The alliance, in turn, offers the practice the financial stability of a relationship with a hospital, yet allows the practice to remain independent. Embedded arrangements solve recruiting challenges for both parties, according to the report. The hospital increases their physician numbers for patients and a practice can utilize a physician without recruitment hassles.
While the arrangement seems ideal, not many hospitals and practices are currently beginning such alliances. Analysts believe the reason is because side-by-side relationships can be difficult.
The practice and the hospital must maintain a close relationship to ensure both parties are benefitting without encountering legal problems. The hospital and the practice need to understand the parameters of the arrangement and identify who is in charge of certain decisions. Discussions should include the following issues: record keeping, HIPAA compliance, EMR system compatibility, contract stipulations and billing, among others. Agreeing on specifics in the beginning is essential for eliminating conflicts later.
Despite the hard work upfront, the relationship could offer both parties financial stability. If side-by-side alliances succeed, they have potential for the long term or could act as a test run for the practice before selling to a hospital, according to the report. The alliance could also be a starting point for the hospital-employed physician to become partner or buy the practice themselves.
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