Four Cost Saving Opportunities in Outsourced Physician Services

Outsourced physician agreements include areas such as outsourced emergency services, outsourced anesthesia, and radiology services. 

These critical agreements support healthcare organizations in vital areas. 

Stark I and Stark II mean outsourced physician services agreements require another level of scrutiny and demand market competitive reviews. 

Cost savings opportunities in these agreements are available in four areas:

1. Subsidy payments

Physicians may require additional payments outside of contract terms due to losses or providing extra services. 

At VIE Healthcare®, we recommend close analysis of all subsidy payments.

Hospitals must ensure reasons for subsidy payments are substantiated before agreeing to them. 

Subsidy payments can be requested if reimbursements are lower, or physicians invest more time than anticipated in providing an agreed service.

All subsidy payments should be reviewed annually.  

2. Risk agreements

Is the agreement a shared risk with the physician or a no risk agreement? 

The performance of the physician group must be aligned with the hospital.

At VIE Healthcare®, we recommend a shared risk or a shared performance risk for all outsourced physician services agreements. 

3. Market competitiveness

Hospitals must closely scrutinize all rates, terms and salaries within every agreement. 

When benchmarking services, we look at cross pollination of rates in all areas, especially salaries. 

Benchmarking to ensure market competitiveness is a core requirement of federal regulations. 

4. Analyze the line item details

Like every outsourced service, the invoice line item details for outsourced physician services must be analyzed every month. 

Outsourced physician services agreements must also be reviewed annually, even for a five-year agreement. 

Due diligence in managing these agreements is essential, whether your hospital is renewing a contract, starting a new one, or reassessing its terms.

VIE Healthcare® Consulting works with hospitals to simplify and standardize outsourced physician services agreements and support them in achieving their cost savings goals. 

Reach out at lmiller@viehealthcare.com to discuss your cost savings goals and how we can support and accelerate cost savings opportunities in your organization.

Lisa Miller

Lisa Miller

Lisa Miller is a consultant, speaker, and podcast host. Her consulting firm, VIE Healthcare, has provided services to over 1,000 hospitals and organizations since 1999.

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DOWNLOAD FREE REPORT

Discover 15 Effective Cost Savings Strategies That Most Hospitals Can Apply Right Now

Learn how these five principles can help you reduce costs immediately.

VIE Healthcare 15 Effective Cost Savings Strategies Report Cover Image

A strategy developed from analyzing over 5,000 hospitals

A simple step-by-step plan in plain language

Proven processes to organize and motivate your team to find savings

We protect your information