Hospital-physician integration takes different forms, thus reflecting different types of risk sharing, integration of operations, degrees of exclusivity, and capital investment. These types include the independent physicians associations, open physician-medical associations, closed physician-hospital associations, management service organizations, and fully integrated organizations. The comparison between the open-physician hospital organizations and the closed physician-hospital organizations are that they both facilitate the management of health care by contracting both the doctors and the physicians.They also provide services related to the administration of the physicians in the field of the hospitals and physicians.
They both provide ambulatory care facilities in the region or area where the physicians provide their services. Both hospital arrangements maintain separate working offices where physicians provide their services or do their own practices separately from the rest of the hospital officials though they are joined together by contracts (Appling & Amery, 1999).They also allow the physicians and the hospital to maintain their independence in the business and clinical operations since the arrangements focus on the administration to assist contracts in the health field. Conversely, the major difference between the two integration types is that the closed physician-hospital organization is selective to the contract that the physician entered into. Further, it is usually based on the quality and the cost of the service.The closed hospital organization arrangement forms restricted relationships between physicians, thus making them to work in accordance with their contract.
The technique of using the closed physician-hospital organization tends to lower the production cost and increases the quality of the services provided. Within the closed physician-hospital organization, the prices of the services are higher than the ones for the open physician-hospital organization but the bargaining power is more because of the nature of exclusiveness.The most effective Management Service Organization scheme is the closed physician-hospital organization. This is because in the closed physician-hospital organization, there are selective contracts between the hospital management and the physicians themselves based on the quality and cost considerations. In addition, this format tries to relate the physician’s efficiency in the work and the kind of service provided with the related requirements as give in the contract.
The closed physician-hospital organization arrangement develops limited relationships with doctors which are capable of coordinating more improved care than the open physician-hospital counterparts (American Hospital Association, 2004). Due to their improved capability, they tend to provide more accurate services and are thus more efficient. Since they have a close relationship with the hospital management, they tend to work effectively since they function as if the business is theirs. The output is thus greater .
more output is therefore realized in terms of services.Due to the fact that they are in conjunction with the management, their services tend to be cheap in the long run. This is despite the fact that efforts to initiate them usually prove expensive since they first ensure that the initial process of equipping the hospitals with facilities is complete. Afterwards, they work with the healthy institutions, thus making the business to be cheap in due course through the process of standardization. This phenomenon leads to lower production costs and improved quality since the facilities found in the hospital are the best according to the management.
Such facilities are of the best quality during purchase. The standards of the services provided are thus of high quality. In addition, the closed physician-hospital organizations improve the quality of their bargaining power due to the associated high prices as well as their exclusive nature.
References American Hospital Association. (2004). AHA guide to the health care field. Chicago, Illinois: American Hospital Association. Appling, J. W. ; & Amery, B.
(1999). Integrated health care: Lessons learned. East Lansing, MI: Medical Group Management Association.