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Developing Strategy for a PHO and Clinical Integration


Community hospital in a competitive suburban market


To develop the legal and organizational framework for a PHO; to build support to attract voluntary physicians and pursue clinical integration.


Veralon and legal counsel facilitated a series of working sessions with a steering committee of selected independent physician leaders and hospital administrators. The purpose was to build trust and develop an understanding of clinical integration and what a PHO could achieve. These sessions covered:

  • The potential goals and activities of the PHO, including value-added services and clinical integration
  • Business planning and financial planning for the PHO
  • Solicitation strategy

Given the important legal considerations for each of these topics, Veralon worked closely with counsel to explain the legal issues to the steering committee and then work through each issue. The PHO’s organizational and governance structure was developed to meet the critical business needs of the organization while remaining well within legal constraints.


Through the steering committee, physicians played an active role in shaping the PHO and gained a clear understanding of its business functions and the legal parameters. At the solicitation kick-off with the entire medical staff, steering committee physicians presented and spoke to the value the PHO would offer independent physicians and were able to answer their colleagues’ questions.

The PHO had a successful solicitation and is active in developing a clinical integration program and value-added services, such as group purchasing, for its members.