Best Practices for Co-Management
Some general best practices for these arrangements include:
- Clear understanding of agreement terms, which must define what services will be provided and how parties will be compensated. The valuation should match this agreement.
- Cognizance that survey data is commonly misused. Physicians may point to a survey and request median compensation for RVUs. These earnings can be inflated and hospitals should be careful and mindful of how survey data is used.
- Finally, fair market value means compensation cannot consider the value or volume of physicians' referrals.
- Development of service line (medical directorship, budgeting, strategic planning, community relations/education, clinical protocol development, etc.)
- Ongoing assessment of clinical environment (staffing, scheduling, work flow processes, supervision, case management duties, etc.)
- Materials management (purchasing, negotiations, etc.)
- Medical staff functions (credentialing, committee structure, coordination with administration, etc.)
Sample Performance Metrics
- Benchmarking current operations and performance
- Percentage of appropriate treatment plans at certain treatment stages (initial treatment, adjuvant therapy, completion, etc.) and indications
- On-time infusion start times
- Infusion service efficiency (i.e. turn times)
- Lower cost drug administration with equal efficacy and quality
- Infusion site infection rate
- Patient and staff satisfaction levels
- Compliance standards (i.e. QOPI/PQRI)
Andrew McDonald, FACHE and Partner in the Healthcare Consulting Division, works with a team of experienced health care professionals that possess diverse backgrounds in accounting, coding/compliance, due diligence, financial analysis, IT (EMR), reimbursement, valuation and other healthcare consulting services.
Contact Andrew at amcdonald@LBMC.com or call 615-309-2474 for more information on oncology co-management arrangements or other challenges presented by an ever-changing healthcare environment.