Veralon Views Blog

The Veralon Views blog is an extension of our partnership with leaders who are transforming the healthcare industry. Here, we share expert perspectives from our nationally recognized senior consulting team on issues that are key to the success of your organization.

A New Way to Affiliate: Health System Equity Investment in Physician Groups

by Daniel M. Grauman and Benjamin Tudor

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Experts already predict another record-breaking year for private equity investment in physician practices, with 45 deals announced or closed in Q1 2019 alone. As private equity interest in ophthalmology and dermatology stays hot, and as other specialties capture investors’ attention and dollars, some health system leaders are offering an alternative to private equity capital by […]

Micro-Hospitals: Short-Term Fad or Promising Market Growth Strategy?

by Meredith Inniger, Manager

Many conversations we have with hospital and health system executives about market growth strategies eventually turns to the topic of micro-hospitals — and for good reason. These facilities typically include a small-scale emergency department (ED), low-acuity surgery, and are often comprised of eight to 10 inpatient beds as well as additional observation beds (notably, these […]

5 Strategies for Aligning Physician Compensation with Value-Based Performance

by Amanda Brown, MHA

The move toward value-based contracts is happening “in small doses,” a 2018 MGMA survey found. While nearly three out of five hospitals participate in value-based contracts, just 34 percent of healthcare reimbursement is tied to value. This presents healthcare leaders with a dilemma: How can we engage physicians in value-based payment models when so little […]

Adjusting wRVUs for Modifiers when Compensating Physicians: The How and the Why

by Karin Chernoff Kaplan, Director

The use of CPT code modifiers to adjust work relative value units (wRVUs) under physician compensation models has become a universal practice among hospitals and health systems that employ physicians—and with good reason. The risks of not applying CPT code modifiers—such as an inability to objectively measure performance—are significant. Why should healthcare organizations that employ […]

Coordinated Medical Staff Development Planning for Large Health Systems

by Robert Hill, MBA, MS, FACHE and Craig E. Holm, MBA, FACHE

Medical staff development planning requires analytic rigor and detailed work. There is no way around it; a multi-hospital health system needs to determine the needs of each of its individual hospitals, as well as the system in the aggregate, in a consistent manner. Health systems can realize resource efficiencies and strategic benefits by addressing medical […]

Determining Physician Compensation for Administrative Services: The Role of Market Data

by Karin Chernoff Kaplan, Director and Rich Chasinoff, Principal

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Although a determination of fair market value (FMV) depends on the relevant facts and circumstances related to a particular arrangement, reasonable compensation is generally defined as the level of compensation that is consistent with the amount that would be paid by like organizations for comparable services under similar circumstances. Physicians who provide administrative services must […]

Evaluating the Financial Performance of Your Employed Physician Enterprise: Going Beyond Physician Losses

by Rudd Kierstead, Principal and Craig E. Holm, Director

If your employed physician enterprise is like most, you are experiencing calculated losses of $100,000 to $200,000 per physician, and the losses are likely increasingly intolerable. The figures for physician losses, as currently determined, certainly grab attention, and as a financial indicator are very important. However, those figures do not provide much in the way […]

BPCI Advanced: Apply Now,
Decide Later

by Amanda Brown, Manager, and Amanda Kueh, Analyst

CMS has opened applications for a second cohort of BPCI Advanced (Bundled Payment for Care Improvement-Advanced) participants in April. This initial application step gets you valuable data, and time to decide whether to pursue participation. Advantages of applying include: No obligation to participate. You have time (likely until fall 2019) to decide whether to sign […]

Top 5 Ways to Supercharge Your Claims Analysis Capabilities

by Amanda Brown, MHA

Supercharging claims analysis capabilities empowers healthcare organizations to zero in on opportunities to improve care and reduce costs. The most successful organizations typically elevate their performance under value-based contracts by using claims analysis to drive engagement and improvement. Achieving next-level claims analysis status requires a multifaceted approach. To gain the most value from claims analysis, […]

Advanced Practice Clinicians in Medical Staff Planning: Four Factors to Consider

by Molly Johnson, MHSA and Craig Holm, MBA, FACHE

The growth and aging of the U.S. population will significantly increase the demand for medical care over the coming decade. At the same time, the supply of physician services is decreasing as physicians work fewer hours per week, and retirements are likely as more than a third of currently active physicians reach age 65 within […]