LEADERSHIP Partnering with your

hospital or healthcare system

Kevin W. Lutz, DPM

May 19, 2012

Vice President, Surgery & Anesthesia

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“Hospitals are looking for innovative ways they can align the economic interests of their doctors.”

Lani Berman, MPH, MBA

VHA, Inc. 2012

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2005 2007 2009 2011

PRACTICEHOSPITAL

Trends in Healthcare

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A PricewaterhouseCoopers survey found 71% of physicians are currently aligned with hospitals on some level, from directorships to employment.

OR Manager Vol 28, No Page 7

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• Physicians are employed for medical services. In return, either a full-time or part-time salary is paid by a hospital, medical foundation, provider-based clinic, faculty practice plan, or group practice.

Employment

• In a joint venture between physicians and a service line, such as an ambulatory surgery center, the venture owns the service line and bills third-party payers for patient services.

Joint Venture

• The hospital contracts with physicians to manage a service line wither by direct contract or through a new-entity joint venture.

Comanagement

Alignment models

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Alignment models

• Under a contractual relationship, a clinician leader provides leadership and administrative oversight.

Directorships, stipends, and management

contracts

• A structured arrangement between a hospital and physicians to share savings for a service without jeopardizing quality. The arrangement meets specific criteria set by the Health and Human Service Office of Inspector General.

Gainsharing

• A hospital and physicians collaborate to reach targets for cost and quality for a procedure or service line. The hospital shares savings by reinvesting into the service line.

Program reinvestment

What? A MEGATREND

A Megatrend

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“Physician employment is a megatrend-in most cases, it’s going to be the model”

“A driving force is bundled payment, expected to become a common model in the next few years”

Ken Mack, Hospital-Physician Consultant

Medical Directorship

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• Most popular form of alignment• Hourly rate is dependent on FMV of specialist. For a

podiatrist* it is approximately $265.00 per hour.• Medical Director of ______________• Directorships have a contract that contain specific language

around• Job Duties• Hours per week• Benefits

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Medical Staff Leadership

Medical Staff Leadership

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• Department Chair• Department Vice-Chair• Credentials Committee• Medical Executive Committee• Executive Committee• Peer Review

How do you get a piece of the pie?

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Get off our island and……..

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It all begins here

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Be yourself

Know your worth

Build Relationshi

psKnow your

limits

Use your network

Be professional

The secret ingredients….

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What not to wear to the hospital….

Good luck… call anytime!

Questions?