While the strategic objectives of each practice and hospital are different and should be taken into account, PSA can provide hospitals and physicians with a viable option to achieve their strategic goals. If you have any further questions or would like more information about PSA, please contact the experts below at (800) 270-9629. For a deep overview of medical service agreements, you must read our modern PSAs whiteboard: A Stable Alignment Model in an unstable Healthcare Environment. We assume that health care professionals who read this article are unlikely to need further study of the benefits of the acquisition or the factors that drive private equity systems and companies to purchase practices. Instead, we want to use this Coker connection to highlight some of the off-use options that practices and systems can use to achieve better results. There are signals in the market that independent practices are not decreasing as much as the above articles suggest. It was only last October, at the mgMA 2018 annual conference, that a group of doctors shared some of the unintended consequences — increased costs, withdrawal of doctors, flat or declining results — of this flow of acquisitions, predicting that independent practices could return in the near future. [3] So whether our readers come from large systems, private equity firms or private firms, we hope that this piece will serve as a productive reminder that employment is not the only option to track the alignment between doctors and hospitals or health systems. Depending on the situation, the structures described below may show an upward trend similar to that of employment or acquisition without the same unintended consequences or risks. A growing trend in the direction of physicians and hospitals is linked to professional services agreements («PSA»). An PPE is generally defined as a financial relationship between a medical practice and a hospital where the medical practice remains an autonomous unit, but where doctors are compensated by the hospital at fair value for their professional services. Among the basic elements of a traditional PPE is the upward trend in medical practice purchases in recent years is well documented and continues to increase.

A recent study by the Physicians Advocacy Institute (PAI)[1] reported that hospitals acquired about 8,000 additional practices at the federal level between July 2016 and January 2018. The share of hospital practices increased by more than 70% over the entire period studied, from July 2012 to January 2018. The results of the PAI study, combined with the recent increase in private equity practices, as described by modern Healthcare in December 2018[2], point to the acquisition of physicians as a hot and trendy topic. If your practice, health care system or company want to know more about Coker`s work in guidance strategy or physician nators, please contact us here. One of the advantages of the PSA model is the ability to agree on specific objectives and enable hospitals and physicians to achieve clinical and financial integration without employment. However, in many ways, PSA`s flexibility also creates additional challenges in administration to optimize its effectiveness.