Physician and Provider Engagement and Alignment

Hospital Best Practices and Recommended Strategies

Physician Engagement

Physician Alignment

  • Align and partner with physicians and other providers to successfully transition to a value-based system and prepare for population health
  • Partner with physicians to develop a common vision, goals and initiatives focused on increasing quality of care and creating value to position the hospital for participating in shared savings programs, Accountable Care Organizations (ACO) and patient centered medical homes
  • Develop an integrated clinical physician and hospital leadership team
  • Coordinate a local provider network to generate referrals for specialty services and other inpatient services to maximize revenue in a fee-for-service payment environment, at least during the transition period
  • Build relationships with other regional hospitals and physicians to position the hospital for developing and implementing affiliation strategies
  • Align with physicians through:
    • Functional alignment, such as shared medical records and billing
    • Governance alignment, such as a shared management team
    • Contractual alignment, to include both employed and non-employed physicians

Physician Incentives

  • Develop physician contracts based on Relative Value Units (RVU) and include productivity bonuses and incentives for, quality, patient outcomes and experience, reduced cost, growth, panel size and timely chart completion. Refer to the sample physician agreement.
  • Consider the following recommendations for developing and managing physicians contract based on RVU:
    • Set the base compensation at an attainable level such as 50th percentile of Medical Group Management Association (MGMA) benchmarks. However, consider 25th to 35th percentile for new providers
    • Establish a minimum threshold for pre-determined dollar amount per RVU (or Work RVU) once the threshold has been met
    • Develop the RVU based incentives to directly correlate between provider effort and incentive dollars
    • Provide physicians monthly updates on performance measures relative to goals
  • Establish a practice manager role to provide oversight of operations and ensure proper goal alignment between physician practice and hospital
  • Establish policies related to chart completion incorporated into the providers’ employment contract and disciplinary action is taken if providers do not adhere to the policy.

This project is/was supported by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services (HHS) under grant number UB1RH24206, Information Services to Rural Hospital Flexibility Program Grantees, $1,560,000 (0% financed with nongovernmental sources). This information or content and conclusions are those of the author and should not be construed as the official position or policy of, nor should any endorsements be inferred by HRSA, HHS or the U.S. Government.