Why It May Be Time for Health Systems to Restructure their Physician Enterprises

by Daniel M. Grauman, Managing Director & CEO
and John Harris, Managing Director

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The median loss per physician employed by a hospital or health system totaled more than $249,000 in 2023. Now, as hospitals face their biggest financial crisis ever, hospital leaders must consider: “Is there a better structure for our physician enterprise?” The pain points that hospitals and physicians experience under an employed physician enterprise model are […]

6 Key Elements of a Physician Strategy

by Mark Dubow, Director
and Rudd Kierstead, Principal

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As health system physician enterprises have grown, addressing their challenges are central to health system success. Engaging physicians and supporting health system goals requires a cohesive approach.   Contact the Experts: Mark Dubow, Director, mdubow@veralon.com Rudd Kierstead, Principal, rkierstead@veralon.com

3 Ways to Build Relationships with Physicians Now

by Karin Chernoff Kaplan, Director
and Rudd Kierstead, Principal

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Many independent physicians are financially challenged as the COVID-19 impact continues. Some may find employment or other alignment opportunities attractive now, even if they have not shown interest in the past. Health systems that work to develop relationships with these physicians now will be at an advantage.

Why It May Be Time for Health Systems to Restructure their Physician Enterprises

by Daniel M. Grauman, Managing Director & CEO
and John Harris, Director

Open PDF file >

Even before the pandemic, the median loss per physician employed by a hospital or health system totaled more than $278,000. Now, as hospitals face their biggest financial crisis ever, hospital leaders must consider: “Is there a better structure for our physician enterprise?” The pain points that hospitals and physicians experience under an employed physician enterprise […]

Focus on Three Levers to Urgently Address Leakage

by Lynda Mischel, Principal
and Rudd Kierstead, Principal

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Among the many unexpected effects of COVID-19 is the loss of the “normal” patient population coming through physician offices to address their health concerns and seeking procedures. This lost volume has heightened the urgency to effectively address “leakage.” Research indicates that acquiring a new customer is anywhere from 5 to 25 times more expensive than […]

Physician Enterprise Optimization

by Rudd Kierstead, Principal
and Robert F. Hill, Jr., Principal

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Prior to the pandemic, we learned something quite surprising.  In a Veralon survey, only 42% of respondents viewed the financial losses on employed physician enterprises as “unacceptable” or a “major priority.” Perhaps “surprising” is too tame a description.  We were “shocked.”  At the time of our survey, the level of losses typically varied between $150,000-$200,000 […]

3 Ways to Build Relationships with Independent Physicians Now



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It is the opportune time to build relationships with independent physicians. As always, one answer does not fit all so leadership needs to assess each individual physician and the appropriate models with care and attention. After more than two months into the COVID-19 pandemic, the situation for many independent practices remains shaky. Practices are struggling […]

Address “Sacred Cows” to Get Past COVID-19 Shock

by Mark J. Dubow, Director
and John Harris, Director

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Every organization has sacred cows. The financial challenge from COVID-19 calls for large scale improvements. This has emboldened our clients to address sacred cows, making tough changes that were unthinkable a few months ago.  The time to act is now! Sacred cows to consider include: Underperforming Assets: Every organization has some assets that perform significantly […]