Working with all sizes of hospitals and their physician partners at LudiTM, I see a lot of interesting things. Once, I met a Chief Medical Officer that carried around his physician agreements in a folder that had an orange stain on it. The stain was reminiscent of cheese puffs, but who am I to judge?
These days it feels like every piece of software marketed for physicians promises to save time. But what ends up happening? You trade a 5-step process that you knew like the back of your hand for a “new” 4-step process that ends up taking even more time!
As hospitals cut costs in every area, one of the last remaining protected buckets is physician contracts. What if I told you that you can cut 1% off your total spend this next year. Would you believe me? There are 3 solid ways to cut your spend, and actually, with data, all can be relatively painless. You need a ginzo knife to get in there and trim the fat.
A wise person once told me there are only 2 levers in business. You can do one of two things to succeed profitably. You can increase your revenue or decrease your expenses. It’s really that simple. To improve profitability you must either increase your revenue or decrease your expenses. I’ve personally been part of organizations that were growing as well as those that were not growing, even shrinking in revenue. Let’s start with growth though.
Topics: physician contracts
Health care organizations pay physicians for a variety of duties that are not patient care based, but are more administrative or perhaps task based activities that are for the benefit of the company, not necessarily the physician. These activities are not defined as productive time, meaning the physician cannot bill insurance companies or a patient for this time. It is work being performed on behalf of another organization, not a patient. Over time, health care organizations such as hospitals, device companies, large physician groups, pharmaceutical companies have had to pay physicians a fair hourly rate for all the hours asked of physicians.
Topics: physician contracts
We know as a leader in your hospital organization that you’ve got a number of priorities and likely a number of reasons to toss and turn through the night. We also know that physician administrative agreements are an intricate part of your strategy to align with physicians and are probably a much more complicated and time-intensive process to manage than they should be. We've gathered a couple of the reasons that may be keeping you up at night when it comes to your physician contracts and offered solutions so you can finally get some shut eye.
Physician administrative agreements are such a critical part of hospital strategy. The challenge with these agreements is they live in a variety of departments where each department manages them differently which can be cause for manual process and leave large opportunity for error. With automation comes concrete process across all silos of physician contracts as well as ownership of the problem.
The regulatory environment dictates that hospitals who contract with physicians meet specific conditions in order for the contract to be legal. The conditions are meant to ensure the physician payment is not based on volume or value of business because it can lead to overusing services and increasing overall costs of care. Technically violating your own contracts can lead to multi-million dollar settlements.
Our hospital clients have let us know that the handling of physician administrative contracts is a “hot potato” within their administrative team. Nobody seems to want to fully own the issues that come along with these complicated contracts; everyone seems to own a piece of physician administrative contracts such as compliance, medical staff offices, hospital administration, legal teams and the finance department.
Two weeks ago, our friends at MD Ranger announced publication of 275 physician compensation benchmarks for call coverage, medical direction, administrative services, leadership services, hospital-based services, clinical professional rates, telemedicine, and diagnostic testing rates. MD Ranger is used in over 325 facilities across the US, including large non-for-profit health systems, urban trauma centers, and rural critical access facilities. MD Ranger helps healthcare organizations determine physician contract rates and document fair market value through its web-based platform. Ludi has partnered with MD Ranger for a number of years as our expertise and products work well together. Today, we wanted to share insights from MD Ranger’s 2017 reports with you.