Doctors' Employment Contracts Due For Renewal—and Revamp

Physician employment contracts with hospitals that were signed in the early days of healthcare reform are coming up for renewal Experts say the expectation of payment reform requires that these new deals include the flexibility to adapt to expected and unforseeable changes.
Published Online: July 15, 2014
Physician employment contracts with hospitals that were signed in the early days of healthcare reform are coming up for renewal.

Experts say the expectation of payment reform requires that these new deals include the flexibility to adapt to expected and unforseeable changes.

“We're seeing a fair amount of handwringing in terms of these deals,” said Max Reiboldt, president and CEO of the Coker Group, an Alpharetta, Ga.-based healthcare consultant. “We are changing the paradigm of how doctors are being paid. It's not 100% (relative value unit) productivity anymore.”

That said, the predominant payment system has not changed yet and probably won't before contracts expire. So Reiboldt said many new employment contracts are including automatic renegotiation triggers if, for example, 20% of a hospital system's reimbursement starts to involve pay-for-value metrics.

Read the full story here: http://bit.ly/1oWFvjW

Source: Modern Healthcare

Feature
Recommended Articles
Genevieve Kumapley, PharmD, BCOP, reflects on the significant out-of-pocket costs associated with oral oncolytics and suggests how a change in benefit design can help patients afford the treatments they need.
All-cause mortality and hospitalization rates and inpatient expenditures among Medicare fee-for-service beneficiaries decreased from 1999 to 2013.
Legislative action on Medicare’s Sustainable Growth Rate (SGR) could have important implications for physicians, especially in terms of financial risk. In the 13th part of the Healthcare Reform Stakeholder Summit, panelists Francois de Brantes, MS, MBA, Ateev Mehrotra, MD, MPH, and Arthur Vercillo, MD, FACS, delved into the topic of SGR reform.
Two inexpensive generic drugs have been shown to reduce breast cancer deaths in postmenopausal women, according to studies published in The Lancet.
Officials say the number of enrollees and their relative good health made it possible to negotiate lower rate increases. However, premium increases are higher in Northern California, where there is less competition.