Manasquan, N.J. -- Integrated healthcare delivery systems (IDSs)
have continued to develop and expand their market reach through
partnerships and acquisitions of physician medical groups.
However, IDSs must remember that while these deals may look
appealing at first, close and careful scrutiny is the key to
being successful in the next few years, according to The Managed
Care Information Center (MCIC).
MCIC's monthly publication The Executive Report on Integrated
Care and Capitation offers concise and comprehensive analysis and
discussions of some of the most recent reports and studies that
affect IDSs. For example, a recent issue analyzed a study by
Irving Levin Associates Inc., which showed that mergers and
acquisitions among physician medical groups are up accounting
for 155 of the more than 600 publicly announced healthcare
mergers and acquisitions during the first and second quarters of
Another study discussed in The Executive Report on Integrated
Care and Capitation showed a decline in the number of physicians
being acquired by hospitals over the last four years.
Additionally, the Deloitte and Touche study showed that over the
last two years, more than three out of every four hospital-acquired physician practices operated at unprofitable levels.
One potential reason for the failure of many practice management
acquisitions is because "all too often hospital leadership has a
limited understanding of physician business economics," F.
Kenneth Ackerman Jr., and Keith Moore, both vice presidents with
the Washington, D.C.-based management and research consulting
firm McManis and Associates/MMI, told The Executive Report on
Integrated Care and Capitation. Some other reasons may include,
but are not limited to: over-valuing the worth of the practice;
poor group compensation design; and vague or unclear medical
group performance expectations.
Readers of The Executive Report on Integrated Care and Capitation
recently learned how hospitals can turn their under-performing
medical groups into assets for their IDS, with advice offered by
McManis and Associates/MMI.
One key to success is to do a quick assessment of the physician
practice's overall operations, examining whether the organization
is properly designed, i.e.: physician governance structure and
attainable performance expectations. Another key is to make sure
IDSs have a focused, investment-oriented strategy, as well as
ongoing performance monitoring and improvement efforts.
Industry trends concerning the profitability of IDSs-acquired
physician medical groups represent just one of the many critical
issues discussed each month in MCIC's publication, The Executive
Report on Integrated Care and Capitation. Each month, the
editorial staff works to identify and research the latest issues
affecting IDSs and capitation rates. In addition, each issue of
The Executive Report on Integrated Care and Capitation offers
clear, concise and practical information on the issues identified
from some of the most prominent IDS experts. The introductory
price for the newsletter is $207.
For more information contact: MCIC, 1913 Atlantic Avenue, Suite F4, Manasquan, NJ 08736; (888) 843-6242, fax (888) 329-6242, e-mail firstname.lastname@example.org.
For more information contact The Managed Care Information Center, 1913 Atlantic Avenue, Suite F4, Manasquan, NJ, 08736, toll-free telephone 1-888-THE-MCIC (1-888-843-6242), fax 1-888-FAX-MCIC (1-888-329-6242), e-mail email@example.com or online at http://www.themcic.com.