Do Your ACO’s Provider Distributions Need to Be at Fair Market Value?

by William Hamilton, Manager

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Accountable Care Organizations (“ACOs”) receive a substantial portion of their revenue through shared savings programs in which payers pay the ACO a portion of total cost savings generated by member providers through effective care management. The ACOs then distribute part of the shared savings to participating healthcare providers, based on a distribution formula; the remainder […]

Filling in the Blanks: Addressing Degree of Physician Alignment in Medical Staff Planning

by Molly Johnson, Manager

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If your organization is like most health systems and hospitals, your physician recruitment plan may be based on a less than complete picture of your existing physician base. Many medical staff recruitment plans do not consider the extent to which the organization’s physicians and their patients are making use of the organizations inpatient and ambulatory […]

Different Economics, Different Payment: Call Coverage Stipends for Employed vs. Independent Physicians

by Stuart J. Schaff, Senior Manager & Matthew Raible, Senior Associate

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Physician employment agreements now commonly include compensation for services beyond basic clinical services; they may also provide compensation for medical directorships, teaching, on-call payments, and so on. We have found that physicians transitioning to hospital employment are generally accepting of clinical compensation models that include a base salary coupled with productivity and quality incentives. However, […]

Due Diligence: Not All Risks Are Equal

by Danielle Bangs, Manager and Benjamin Tudor, Associate

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A prudently conducted due diligence effort will surface a comprehensive (and often lengthy) list of potential risks and issues related to the transaction being assessed. However, the implications of these risks will vary widely. In the thick of due diligence, it often seems that finding issues and risks is the ultimate goal. It can be […]

Urgent Care: Understanding Value to Manage Transaction Expectations

by Danielle Bangs, Manager & Jordan Klein, Associate

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Urgent care is in the investor spotlight. Private equity, venture capital, health insurers, and health systems all want a piece of it, and transaction activity in the industry is high. Despite this flurry of activity, the industry remains largely fragmented, and the size and nature of urgent care companies varies dramatically. This variation, as well […]

How Risk Affects Valuation

by Denise Palencik, Manager

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Business valuation is as much an art as a science. It not only requires technical knowledge of valuation methodologies, it requires the valuator to have significant judgement and the industry experience to evaluate the entity in the context of a broad understanding of the industry. One area where a valuator must exercise considerable judgement is […]

Recent Settlements Suggest Need for Greater Caution Around Physician Deals

by Stuart J. Schaff, Manager & Sean Looby, Senior Associate

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A parade of headlines announcing record-breaking settlements (chart below) has left healthcare executives, lawyers, consultants, and even physicians wondering if they could be exposed to regulatory or legal action as a result of any of their employment or other physician-hospital alignment arrangements. The government’s incredible return on investment on enforcement actions, as well as a […]

The Maine Track: Addressing the Primary Care Physician Shortage Head On

A uniquely Maine curriculum and reserved and subsidized slots for Maine students are just two of many innovations in place at a partnership between Maine’s largest hospital, Maine Medical Center, and Tufts University School of Medicine.  Tufts and Maine Medical Center jointly recruit and select students in the co-governed program that awards a combined diploma […]

Engaging Physicians in Your Strategic Planning Process

We recently received the following question from a registered attendee during our ACHE Cluster session, Strategic Planning from Formulation to Action, in San Antonio: In a hospital or health system, how do you broadly engage physicians in the strategic planning process? Physicians are integral to the strategic planning process, and multiple options exist for engaging […]

DGA Partners Merges with Health Strategies & Solutions to form Veralon

DGA Partners and Health Strategies & Solutions, healthcare management consulting firms, have merged to form a single consultancy, to be known as Veralon Partners. “This is a merger between equals with many complementary services,” says Daniel M. Grauman, who is Managing Director and CEO of the new firm. “It will allow us to better serve […]