Physicians Prep for Bundled, Performance-based Payments

Karen Minich-Pourshadi, for HealthLeaders Media , August 13, 2010
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For instance, the limited liability corporation put in incentives based on decreasing length of stay, and physicians were able to decrease the LOS for knee and hip surgery from 3.94 days to 2.77 days (or 30%) within the first six months of operations. The comanagement

arrangement also looked at patient satisfaction with the doctors and the patient’s overall experience with both the surgery and the hospital. Patient satisfaction scores prior to comanagement was a raw mean score of 86.5 and (or 80% to 90%) and the current raw mean scores are at 90.7 (yielding 99%).

“We are getting such a good reputation that we are now drawing patients from our western and southern borders,” says Crowell. By creating an LLC, the physicians are consistently looking for ways to save time and money and improve the overall experience for patients.

The agreement not only helps align physicians with the hospital, but also by being involved in the management, the physicians are better able to understand the need to meet and exceed the goals, Crowell says. The LLC model has proven so successful and aligned the facility and the group so well that Iowa Health is planning to implement it again with the cardiovascular group.

Karen Minich-Pourshadi is a Senior Editor with HealthLeaders Media.
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