How Hospitals and Health Systems Can Better Align the Incentives of Physicians to Manage Care Costs

Dear Colleagues:

Please see recent post on how hospitals and health systems can better align the incentives of physicians to manage care costs by Derek Haas: (LinkedIn)

The article by Haas and Gallani is a clear and thoughtful recommendation as to the value of hospital-physician collaboration in order to create value.

The relationship between physicians and their hospitals can be very complex. In some cases “Culture eats strategy for breakfast” (Peter Drucker). It was Al Capone, the gangster, who said “You’re either at the table or on the menu.”

If we speak about surgeons, they are uniquely qualified to reduce costs as the surgical episode of care is easy to analyze and thus, it can be affected in a positive way. Some institutions can’t seem to get past the culture of employer vs employee in order to find their way to collaborate with surgeons so as to create value.

For more insight into this conundrum of Hospital Physician Financial Relationship check out our recent webinar on the Codman Shoulder Society: Hospital-Physician Collaboration and Financial Alignment for Cost Management (CSS 2024 Meeting Report.pdf).

Kind Regards,

JP Warner MD

Founder, The Codman Shoulder Society