Healthcare’s Consolidation Landscape

Christopher Cheney, June 1, 2017

In physician-practice MAP activity, OhioHealth is committed to pursuing win-win scenarios, Louge says.

"Our partnership philosophy with our physicians is that we will joint venture with them in the appropriate outpatient-therapy settings and other places for both parties’ economic benefit, but it is always with the intent to benefit the local patient and to adhere to our charity-care guidelines. When you look at our outpatient profitability, a significant piece of that is generated by joint ventures we have with our independent medical staff. We have those in surgery, we have those in sleep services, and we have those in other areas."

In recent years, mutually beneficial partnerships have been the crucial component of IU Health’s MAP strategy with community hospitals and independent physician practices, he says.

"There are more conversations around service lines and specific physician needs. In Indiana, the demand for healthcare has increased with Medicaid expansion and the PPACA exchange, and that expansion of demand in many places has led to outstripping the physician manpower that exists. So, we are in a lot of conversations to find new ways to partner."

Healthcare consolidation activity is far from over, and the healthcare industry landscape will continue to evolve for years to come, Kamholz says. "We are entering a long period where there is going to be no right answer."

Christopher Cheney

Christopher Cheney is the senior finance editor at HealthLeaders Media.

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