Hospitals and health systems have historically been hesitant to pursue shared savings programs with physicians due to the Office of Inspector General’s (OIG) past position on these initiatives. However, as Squire Sanders health care partner Scott A. Edelstein and Gateway Health vice president Mary C. Reed explain in "Establishing a Shared Savings Arrangement With Physicians," that trend is shifting.
Published in the Fall 2010 issue of the Healthcare Financial Management Association's (HFMA) Strategic Financial Planning newsletter, the article explains how shared savings (also known as gainsharing) programs can help hospitals and physicians collaborate to improve efficiency, encourage appropriate utilization/standardization of resources and improve the quality of care. The authors discuss the regulatory environment, safeguards that must be in place, resources required, the timeframe for establishing the program and financial implications. The article also includes a suggested approach to establishing a shared savings program that complies with the OIG’s requirements.
"Establishing a Shared Savings Arrangement With Physicians" is reprinted with permission from the HFMA.