TABLE 2.
Forms of Economic Integration
| Recruitment of Physicians | Part-Time Compensation | Shared Risks and Gains | Leases | Participating Bond Transactions | Service Lines | Equity Joint Ventures | Aggregation and Concentration | Employment | Outsourcing and Sale of Service | |
|---|---|---|---|---|---|---|---|---|---|---|
| • Location assistance and relocation expense • Startup support: e.g., salary guarantee • Support for group practice growth: incubator model, temporary employment • Liability coverage assistance | • Medical directorships • Department and program chairs • Management contracts • On-call contracts • Medical executive positions (CMOs, VPMAs) • Professional service agreements • Exclusive coverage contracts | • PHO/IPA risk contracts with payers • Bonus/ withhold contracts with employers • Pay-for- performance contracts • Payer “guarantees” • Physician hospital organizations (PHOs) • Management services organizations (MSOs) • Independent practitioner associations (IPAs) | • Supply chain management programs • DRG-specific bundled payments • Hospital provision of in-kind services for cost savings | • Equipment leases • Time-share leases • Block leases | • Subordinated debt issued to physicians | • Centers of excellence • Clinical institutes • Patient unit models | • Ambulatory surgery centers • Diagnostic imaging centers • Hospital-in-a-hospital • Procedure labs • Medical office buildings • Specialty hospitals • Retail clinics • Product line centers | • Group practice formation • Concentration of inpatient volume • Hospital-based physicians | • Practice acquisition • Salaried employment • Foundation model • Hospitalists • Interentity transfers and funds flow models | • Syndicate hospital ownership and management to physicians |