Shared Risk Contracting Concerning the Physician-Hospital Alignment Model
Introduction
Shared Risks agreements in the healthcare system are today considered to be essential elements of financial management forecasting (Fulton, 2014). While these models do not in all cases provide healthcare institutions with the same revenue possibility when equated to payment for services approaches, they are an important section of the fresh healthcare surrounding where all the main actors agree to take more risks as well as responsibility (Hernandez & O'Connor, 2010). It is the 21st century and accountability in healthcare servicing is the goal of every healthcare manager. In order for the healthcare institutions to be successful, it is imperative that managers and physicians maintain a productive and supportive operational collaboration. In that one part in the absence of the other will definitely not avail (Hernandez & O'Connor, 2010). Hospitals that desire to deliver more improved outcomes at reduced expenses are needed to create expressive, equally helpful collaborations and associations with their respective physicians. The developing American healthcare system demands for increased standardization decreased the disparity in the outcomes and suitable costs that require risks sharing agreements among the players (Fulton, 2014). The evolving of the system implies that there are a number of a model that might develop but physicians remain to be the consistent element to any progressing healthcare standard which makes physician alignment and risk sharing agreements authoritative (Fulton, 2014).
Risk-Sharing Contracts In Relation To Physician-Hospital Alignment Model
According to Feldstein (2012), risk sharing has become a common conduct in the healthcare sector in the last few years. There is no a globally agreed definition of risk sharing. However, in healthcare, it can be utilized to describe a non-conventional model of conveying value in connections. The presence of risk sharing agreements implies that economic, and medical consequences are dignified and accepted before agreeing on settling for contracts and all the payments are reliant on the agreed procedures (Feldstein, 2012). When a fresh technology gets into the industry, physicians and healthcare institutions might need to acquire the devices regardless of the involved costs in order to offer quality and dependable services. However, most organizations are likely to become unenthusiastic on becoming the primary adopters of this form of development based on the involved financial threat despite the involved benefits. In this quest under the risk-sharing model, healthcare institutions are required to make investment in any fresh technology after the involved financial and medical outcomes claimed by the supplier have been established (Feldstein, 2012).
In an age that is described by healthcare transformation, a progressing recession, shifting patient’s demographics and the changing regulations, hospitals and clinicians are particularly embracing the attitude of teamwork and establishing the fact that they are likely to acquire higher benefits in collaborative operations (Hernandez & O'Connor, 2010). The growing Hospital-physician alignment is particularly a symbol of economic and clinic change a trend that has managed to acquire the general attention of most administrators within the healthcare industry. Several years back, clinicians and hospitals in most ways acquired benefits from chasing unrelated goals via managed care (Fulton, 2014). However, presently the phenomenon has transformed, with clinicians and hospitals combining their roles and objectives to overcome the transformations that are impacting healthcare operations and the economy. The ultimate results, in most scenarios, is to acquire reduced costs with advanced patient health results as well as augmented accountability. In spite of the low alignment in the industry currently, close to three-quarter of the healthcare organizations in the country are pursuing the approach (Hernandez & O'Connor, 2010).
Physician-Hospital Alignment Need
Several factors are pressing healthcare organizations and physicians in lowering costs while still enhancing quality in general which thus necessitate more cooperative strategy in improving physician-hospital associations (Fulton, 2014). In the recent, it has been established by clinicians that focusing on competition against the hospitals brings fewer benefits when compared to aligning with these organizations (Feldstein, 2012). As the public based reimbursement in the health sector is becoming highly restricted, the likelihood of generating higher potential is reducing rather rapidly. In addition, clinicians and hospitals are inconsistent fights with the increased delivery cost in the sector as well as the increasing and elderly patient populace. In order to maximize the available sources of income and also manage costs, hospitals and clinicians are required to control healthcare delivery collaboratively (Hernandez & O'Connor, 2010).
Risk-Sharing Contracts Benefits
Since risk-sharing agreements offer benefits to the institutions by ensuring that financial and performance threats and benefits are evaluated prior to acquiring tools these contracts are additionally beneficial to physicians (Jeroen, Canfyn, Lieven & Paul, 2016). In that, when an institution is cautious to make huge investment in new clinical technology prior to the outcomes being proven, financial threats are alleviated to the supplier rather than the institutions. In this context, the institutions can operate collaboratively with the suppliers in creating outcomes quantification which in turn generate financial relief if the technology fails to perform based on the set expectations and stipulations (Jeroen, Canfyn, Lieven & Paul, 2016). In addition, in the scenarios where an institution is fighting to meet the set results, the technology provider can collaborate with the trader in growing clearness in data allotment. These then imply that both parties can work collaboratively with the utilization of the allocated data towards achieving the anticipated medical and economic results. In other words, risk-sharing agreements work to ensure that the likelihood of an institution to leading their followers in the acceptance of fresh clinical technology while guarding their financial situations and possibly enhancing the general results is achieved (Jeroen, Canfyn, Lieven & Paul, 2016).
The application of transformation normally necessitate risks but neither the hospital, providers, physicians or suppliers can be eliminated in the progressing fresh world that is mainly focused on the generation of value (Kast, & Lapied, 2006). The value that is mainly prioritized in the healthcare sector is quality, affordability, and accessibility of care services for all individuals. The successful application of risk sharing is mainly dependent on the capability by the institutions to create a balance amid long-run objectives, collaboration as well as relationships. The objective is mainly to focus on the production of the fair as well as reasonable approaches that operate for the benefits of all players (Kast, & Lapied, 2006). In that physician alignment is mainly useful in attempting to lower the expenses involved in care, acquiring better premiums rates, quality superiority and more enhanced relationships that attract patients to the healthcare providers (Kast, & Lapied, 2006).
The healthcare model is transforming rather radically, which is impacting healthcare business and productivity has significantly given that the industry is shifting towards a more lean production attitude (Kast, & Lapied, 2006). With the changes in regard to care delivery, the industry is mainly settling on a more physician-centric approach. Payment, for services model, is mainly grounded on revenue maximization and quality rather than affordability, quality as well as satisfaction a trend that has created intense buyers authority because they have the capability to change their medical providers (Kuhlmann, et al., 2015). With the existence of too many barriers in the sector which incorporates the liberty to accessing individual clinical information and data regarding the caregivers, the healthcare industry is gradually transforming towards consumerism which is to be achieved through physician alignment (Jeroen, Canfyn, Lieven & Paul, 2016). The institutions that have recognized the necessity have acquired the approach of risk management which is mainly targeting to create cost efficiency, thin and better relationships in care provision. Despite the fact that the model is mainly grounded on hospital-physician alignment, it is actually a consumer-centric strategy in the industry which is characterized by competitiveness.
Healthcare Landscape
Kuhlmann, et al., (2015) notes that cost efficiency in the healthcare sector has been a considerable success force for decades. After decades of worrying over the increasing cost that is fueled by technology development, need for quality services and expensive drugs, healthcare institutions and physicians are becoming more self-assured regarding the acquisition of drugs and technology whose expenses cannot be ignored given that to determines performance an occurrence that does not seem to diminish in the contemporary healthcare surrounding (Kuhlmann, et al., 2015). It is without a doubt that the American healthcare sector is in the process of important changes. In reacting too many years of severe insurance payments and augmented staffs contributions, customers are vigorously seeking for strategies to deal with the increasing expenses of the system. The strategies that are currently being utilized include changing payments to the servicing institutions, restraining market entree, and compensation for treatments and medicines where the acquired benefits cannot be shown adequately (Liang, 2010). Simultaneously, patients who are partaking increased monetary responsibility for their healthcare are now equally involved in individualized care, with more anticipations regarding healthcare products and services that they acquire.
Risk-Sharing Adoption and Considerations
Based on Liang (2010) the growing prices pressure from the consumers, the implementation of monetary consequences in relation to medical quality and regulations development, healthcare institutions and physicians are now concentrating more on results and costs rather than revenue. The trend, is significant, driving undeniable transformations in the care sector via enhanced alliance, the application of consistent, evidence-treatment and the modification of decision, making regarding products acquisition and supply from clinicians to the institution's managers and supervisors (Kuhlmann, et al., 2015). Based on the penetrating focus across the healthcare sector in regard to delivering more enhanced results at reduced expenses it is not astonishing that the density to utilize cost suppression quantification for medicines and treatment that incorporates Risk-Sharing agreements (RSAs) is still on the rise (Liang, 2010). Actually, Risk-Sharing contracts are particularly being utilized in the global market specifically in the United Kingdom and Germany as an approach to controlling health expenses. In addition, RSA can be utilized as a ground for compensation decisions, permitting the financers to react to the physician and consumer force for fresh and more expensive medicines while trying to mitigate the fears around the merchandise (Liang, 2010).
Conventionally, Risk-Sharing Contracts have copied several strategies which can be largely be alienated into performance and economic-based contracts. Economic-based contracts in often cases incorporate setting restrictions on the value of the specified medicine or the general amount that can be acquired (Lovrien & Peterson, 2011). On the other hand, contracts founded on performance normally associate payment to outcomes negotiations. Although, this is not usually collective in America, in the past there have been a number of prominent Risk-Sharing Arrangements. However, the recent move by the main pharmaceutical companies to set prices for chronic illnesses such as cancer on the ground of their performance in the industry has triggered the necessity for physician alignment to ensure that the consumer-centric strategy that is mainly centered on generating quality and affordability is not affected (Lovrien & Peterson, 2011).
It is important to comprehend that RSAs normally serves as an operative strategy in delivering quality, building relationships and reducing costs which demonstrate that the model is diverse but it is not applicable for all situations (Lovrien & Peterson, 2011). Based on research the application and the development of the contracts models have in the past been associated with severe barriers as well as intrinsic threats that are not within the control of therapeutic corporations which might include healthcare provision and deprived consumer’s acquiescence (Lovrien & Peterson, 2011). Under the risk-sharing contracts, healthcare financiers and the drug manufacturers approve to connect reimbursement and coverage standards to clinical effectiveness. This association is associated with several benefits to all the parties involved given that the manufacturers can utilize the models to distinguish and show the capability of their merchandise over those of the competitors which can assist them in making strategic decisions (Lovrien & Peterson, 2011). In addition, the healthcare physicians can utilize the models in gaining increased experience with the merchandise, lowering uncertainty in regard to medical value, operations as well as economic outcomes. This results in improved care since physicians have the opportunity to assess the use and the progress of the patients while examining the performance of the product (Lovrien & Peterson, 2011).
In developing leading healthcare organizations physician-hospital alignment, as well as several aspects, are needed that helps in long-run sustainability. In the past decade most of the aspect that conventionally aligned physicians and hospitals have been separated thus creating a competitive and distrustful culture (MacNulty & Kennedy, 2008). This trend is accompanied by the rising demands for coordination, efficiency, and quality which has thus forced most institutions to begin establishing more enhanced physician-hospital alignment that is necessitated for prospect victory. Based on the occurrence, presently, physicians and hospitals across the globe are engaged in reforming the association amid the two parties. Today, physicians and hospital administrators are more focused on developing successful as well as supportive operational relationships in order to acquire success in the period of responsible healthcare delivery. In other cases, past of mistrust and uneven motivations can make it rather challenging but the fact that the administrators desire to acquire sustainability via providing quality as well as affordability is helping in establishing fresh strategies to overcoming the barriers (MacNulty & Kennedy, 2008).
According to May (2011), for an efficient quantifiable integration to take place, Hospital-physician alignment is necessary particularly as the healthcare sector changes to a surrounding where costs will be linked to healthcare results that regards access, efficiency as well as quality (May 2011). When the ground goals of performance are achieved, Hospitals and physicians are abounded to acquire profits from shared investments and in achieving such levels the operations of the institutions must be united. In that, the Shared-Risk agreements seek to ensure that both party’s benefits while still enhancing quality and services deliver (MacNulty & Kennedy, 2008). This implies that if the set performance levels are not achieved, physicians and the respected hospitals are at a threat for lowered payments, zero profits or even eradication from the sector. In short, physical alignment refers to the collaboration and uniting both organizational and physician goals in order to create quality and reduce the operational expenses. This is the operative harmonization amid hospitals and physicians (May 2011). This creates the necessity for adopting fresh delivery and payment approaches offer superiority of patient care as well as augment physician contentment. There are three major organizational options for the healthcare institutes that invest in operative physician alignment which is employed physicians, independent physician and clinically unified systems (May, 2011).
The notion of Hospital-physicians alignment in the healthcare sector is not a fresh concept since it has been in existence since the 20th century (May 2011). The existing trends such as economic variations, fresh reimbursement approaches and the demands and increased health regulating policies are some of the forces that suggest the necessity for increased alliance amid physicians and hospitals for all players to acquire success (MacNulty & Kennedy, 2008). For the healthcare administrators, physical alignment remains to be an utmost priority despite the involved the fact that the uneven objectives amid the parties present challenges. The alignment is more of uniting mutual goals and trust rather than revenue generation. Incorporating Risk Sharing Contracts within the physician alignment helps in generating accountability and transparency via consistent communication as well as collaborations (May, 2011).
Physician-Hospital Alignment Improvement Strategies
In the contemporary healthcare sector, the necessity for physician alignment cannot be underrated. However, the success of the model is mainly determined by the manner it is implemented and whether the strategy utilized suits with the needs of the organization (McCarthy, Schafermeyer & Plake, 2012). However, given that Physician alignment mainly deals with personalized desires and inspirations it is therefore, essential for the hospital leaders to account for the suitable approaches. The alignment approaches are contracts, business servicing, pay and systematized communication (McCarthy, Schafermeyer & Plake, 2012). Business serving is a strategy that mainly incorporates incentives that are focused towards enhancing the existing relationships in regard to the business components amid the physician and the hospital performance. In that, the strategy mainly seeks to align the parties on the basis of their economic connection. On the other and contracts refers to the approaches that are designed on agreement relationships for specified physician solid, investment services and usually concentrating on the mixture of enhancing medical quality, operational efficiency as well as programmatic growth. In this context, these strategies mainly impact medical activity configuration (McGowan & MacNulty, 2007).
Shared risk agreement fits within the contractual strategies that seeks to improve operational strategies while reducing the involved risks for efficiency, quality and lower operative expenses to be acquired (McGowan & MacNulty, 2007). Organized communication as an additional strategy is necessary within the model. Organized communications can best be described as the approaches that are designed on structured communication procedures amid hospital administrators and physicians (McCarthy, Schafermeyer & Plake, 2012). The intention of the unification is the most affected given that the strategy seems to provide directions and common operating grounds. The employment strategy incorporates economic, clinical operation as well objective of alignment. Physician alignment need in different healthcare situations and settings imply that every strategy has its benefits and drawbacks. It is therefore upon an organization to adopt appropriate strategies for achieving the necessary arrangement based on the existing needs (McGowan & MacNulty, 2007).
McGowan & MacNulty (2007) asserts that the current situation in the healthcare system is as a result of uneven goals, mistrust, and competition amid hospitals and physicians. This creates two contrasting cultures because, despite the fact that both are in search of quality services delivery, physicians want their needs to be accounted as well which leads to satisfaction (McGowan & MacNulty, 2007). The identity of every physician is linked amid their expertise and the institution that they work for. For them, quality comes before cost the extensive financial budget of the hospital cannot be ignored. Physicians perceive compensation as a personal matter but for the hospital managers, it is an organizational issue. For hospitals and physicians to acquire success in the current environment accountable, affordable and quality care should be included which will, in turn, improve the relationships between physicians and hospitals (McGowan & MacNulty, 2007).
According to Salas-Lopez, et al., (2014) contrary to the hospital administrators, physician are performers given that they are involved in direct operations that determine the efficiency of the organizations. They mainly center on direct connections and value independence as the patient's supporters (Salas-Lopez, et al., 2014). On the other hand, the administrators are involved in planning and development of guidelines and strategies for enhancing quality. Their interactions are direct but targeting different groups such as investors, stakeholders, physicians, staff, and regulators. Administrators value teamwork while physicians are focused on individual efficiency. Administrators are supporters of the organization in general which makes them participative and their identification comes directly from the institution (McCarthy, Schafermeyer & Plake, 2012). Conventionally, effectiveness was not accounted as a vital to organizational efficiency but today it is a necessary measure. The current healthcare system is mainly focused on offering value-based services which demand safety, superiority as well as competence. Physicians usually play a critical role towards successfully enhancing superiority and health institutions performance. Given that hospital administrators are involved in planning and development affluence for the health institutions can best be acquired by cooperative operation between the hospital and clinicians. This implies that the value of each party is to be acknowledged and appreciated which will, in turn, play part in engaging in Shared-Risk settlements for shared victory (McGowan & MacNulty, 2007).
In controlling costs, increasing quality and creating affordability in healthcare physician alignment utilizes contractual Risk-sharing approach. Physician alignment is essential in achieving this goal and sustaining them in the long run (Salas-Lopez, et al., 2014). Hospitals should provide clinicians with an alignment of communal interests like shared visions, standards and public. Hospitals are obligated to offer knowledge and resources needed for operations such as technology and funds. Influence in the healthcare organizations is normally acquired in effective control which creates prioritizes and strategic guidance that aids the physicians (Salas-Lopez, et al., 2014). Hospitals can additionally provide independence for clinicians in general while still preserving restrictions on individuals conduct and operation. On the other hand, the alignment can be utilized to ensure that clinicians guard the present markets for the healthcare organizations and healthcare delivery harmonization. In that physicians can be incorporated in order to help in the organization and assimilation of healthcare delivery. In that they can improve controlled care, agreement with the utilization of shared-risk and recompenses (Salas-Lopez, et al., 2014). This is because they hold a higher potential in promoting multi-disciplinary alliance.
Physician-Hospital alignment is necessary because the society today is not tolerant of inefficiency and inattention in regard to protection and quality (Baker, Bloom, Davis, 2016). The capability to improve patient safety and superiority is impossible without the pledge amid physicians and hospitals. In this context, shared risk and Physician-Hospital unification are required given that the act as an approach that preserves physicians most suitable approaches and independence and yet maintain personal accountability (Baker, Bloom, Davis, 2016). Having a mutual vision is the central point when attempting to develop unified care approaches. The primary obligation of physician engagement is to improve and reserve physician expertise. In that independence, obligations and liberty must be aligned in creating trust and mutual goals rather than focusing on competitiveness. Physician alignment is the most essential issue that is being faced by healthcare organizations comparative to transformation an aspect that is absent today (Baker, Bloom, Davis, 2016).
The relationship amid clinicians and hospitals are perceived as the fundamental to the proposition of offering utmost healthcare quality at maintainable cost. In the last decade, major transformations have been experienced in regard to extensiveness, scope as well as difficulties of the existing associations (Sowers, Newman & Langdon, 2013). Despite the raising comprehension of the benefits and needs for physician-hospital association the process remains to be a challenging one which revolves around the establishment of suitable approaches and application. The developing healthcare reimbursement and provision development encourage increased collaboration amid hospitals and physicians (Sowers, Newman & Langdon, 2013). While economic demands, as well as the rising regulatory needs, offer the most authoritative facilitators, cultural transformations that incorporates physician management and the transforming anticipations of the operations should be accounted for when opting for authoritative alignment approaches (Baker, Bloom, Davis, 2016). This is because the alignment encourages both parties to perceive each other as vital aspects in achieving healthcare quality under reduced expenses.
More so, clinicians are highly establishing teamwork with hospitals alluring as they are facing the fresh economic challenges in the transforming competitive platform (Sowers, Newman & Langdon, 2013). A technology in the healthcare sector improves and electronic-based records are becoming standardized, clinicians are normally faced with requirements for investment that are too extensive to be practicable economically for one physician or for few individuals (Tollen & Crosson, 2013). The healthcare sector is currently experiencing an increasing consolidation spread with the perception that authoritative institutions are a requirement for endurance. Hospitals are currently searching to create relationships with clinicians groups in order to assist in the generation of financial basis, professionalism as well as an extensive recommendation base especially in regard to outpatient services. The primary benefit of such partnership lies on increased financial steadiness. In a survey that was conducted recently, more than fifty percent of clinicians expressed high interest in unifying closely with their respective hospitals in the quest of improving performance as well as boosting income gain (Tollen & Crosson, 2013).
Further, physician alignment usually leads to decreased administrative barriers in areas regarding equipment, expertise as well as advertising (Tollen & Crosson, 2013). This might additionally, decrease clinicians disclosure to misconduct complaints through the engagement of sharing risk. Physician alignment approaches are creating togetherness amid physicians and hospitals in innovative modes. If this kind of transformations is managed in an appropriate way with the presence of structured and concise communication, aims, arrangements, and intentions then an operative environment that is characterized by accountability and an increased possibility of arrangement strategic efficiency will be acquired (Sowers, Newman & Langdon, 2013). With proper measures and control, this approach can be beneficial to patients, healthcare institutions as well as clinicians. In the quest of maximizing the alignment and ensuring all the relevant regulations ranging from complied with physicians should be incorporated adequately. Based on the barriers and the benefits of applying Shared risk contractual in physician alignment adequate review and professional expertise is a requirement (Tollen & Crosson, 2013).
Physician Alignment Catalyst and Stimulation
Physician alignment is a form of working activation that seeks to truly change the general delivery of the healthcare sector, hospitals and clinicians are bound to stick together (Totten, 2014). The forthcoming accomplishment for health care systems is mainly dependent on clinicians not just on the efficient adaptation of healthcare practice and regulation given that all parties are supposed how to survive in the fresh setting. In addressing these increasing transformations, physician alignment has grown to be a common phrase that is utilized by administrators, physicians and consumers that is mainly aimed at motivating behavioral transformation (Totten, 2014). The existing need for change shows that transformation should be developed in the quest of achieving clinical transformation. However, that fact that developing change is not an easy concept can never be ignored. The capability to activate physician workforce necessitates shared approach, goals, collaboration as well as inclusive strategies of operating. Through the utilization of a strategy that is based on human behavior it is apparent that clinicians and hospitals hold a more enhanced chance for achieving fresh ventures in changing the system and obtaining competitive market benefits (Totten, 2014).
The change state of competition, the desire to acquire upgraded patient involvement and innovative operations are the primary aspects that allow healthcare facilities to create interactions and unify them with the concerns and motivations of physicians. The effective utilization of these process implies that the healthcare organizations can be able to strengthen its referral association which will be useful in retaining and expanding the market space for both parties. Physicians are in progressing battle for career and skills development, quality servicing as well as revenue stability (Totten, 2014). On the other hand despite the fact that both parties share desires to create quality they differ in regard to control as hospitals hold more control over operations but physicians are more connected to the market because they make direct interaction with the consumers (Totten, 2014).
Aligning the goals of the consumers and those of the hospitals is essential given that it lowers the operating expenses while increasing efficiency via shared risks (Trybou, Gemmel & Annemans, 2011). Shared risks do not only imply that the economic benefits and threats are assessed prior to the venture but it also helps in distributing the operating threats equally. In that physicians are not likely to take responsibility for poor quality and market base reduction gave that they work collaboratively with the organization (Totten, 2014). On the other hand, the organizations integrate their physicians in the designing of alignment strategies in order to ensure that efficiency is acquired while still focusing on enhancing quality. An operative physician-hospital integration approach is a vital element in securing success and competitive positioning. Physicians are, therefore, necessitated to take the chances and apply structured communication in order to ensure that these issues are fixed well (Trybou, Gemmel & Annemans, 2011). This, in turn, works to ensure that physicians are mainly dedicated in healthcare delivering the utmost care quality.
Physician-hospital alignment is not a tool for securing survival rather it is a practice in healthcare that involves incorporating physicians within the set health system (Trybou, Gemmel & Annemans, 2011). This can mainly be acquired via well-structured, well-financed physician and extensive programs that incorporate the general procedure of comprehending the needs and behaviors and establishing the most suitable responses. The final objective of the physician-hospital approach is to augment physician operation and patient recommendation by creating expressive associations while improving physician’s services (Trybou, Gemmel & Annemans, 2011). The primary barrier that hinders the success of the alignment is that hospitals are characterized by more control and this limits their abilities to not restrict the authority, obligations and the independence of the physicians. By creating autonomy physicians are able of selecting the most suitable care for their patients irrespective of the alignment intensity (Totten, 2014). An additional challenge, the general process is usually conducted on case planning and therefore cannot be evaluated at any institution. The alignment success is mainly dependent on the organization’s capability to offer support to the care delivery units. In this case, any concern that is raised by the physicians should be considered which is essential in communicative responses and creating transparency (Wolper, 2013).
Zhao et al., (2016) with physician alignment and shared risks agreements actionable marketing knowledge is created. In this context, it becomes easy for the healthcare organizations to comprehend relationship opportunities, focus on cooperation and actual real responses that communicates about the required solutions (Zhao et al., 2016). Today’s healthcare system is in progressive change which implies that it is more dynamic than in the past. Healthcare institutions and clinicians are therefore necessitated to enhance their operations in the quest of achieving higher revenues possibilities while creating utmost patient care (Wolper, 2013). The obligation of physicians is critical to organization and clinical development given that their performance determines competitive positioning. Despite the contrasting goals, the decreasing physician compensation along with the raising operating expenses has mainly triggered clinicians to reassess their competitive positions in healthcare institutions (Zhao et al., 2016). Hospitals which have experienced economic difficulties accepts that collaborating with clinicians allows the achievement of quality improvement, cost reduction, satisfaction and financial stability (Zhao et al., 2016).
Conclusion
Based on the progressing state of the healthcare system, it is apparent that the main focus is to deliver quality under lower costs to create affordability and convenience. Risk-Sharing Agreements attempts to ensure that the economic and medical outcomes of merchandises are proven prior to making purchases. It is apparent that quality and affordability cannot be achieved without the incorporation of physician alignment given that a consumer-centric movement necessitates the participation of both parties. Physician’s role towards high performance is immeasurable and the best channel through which accountability, quality, and affordability can be achieved is through an alignment amid hospitals and physicians through shared risks and collaboration. Hospital administrators are in charge of planning and coordination an aspect that can be utilized to create structured communications to encourage transparency, teamwork and motivate the unification of goals. It is apparent that efficiency can never be achieved without good relationships between clinicians and hospital administrators as the major players. With the current economic changes and consumer demands and preferences consistent modifications, it should be noted that quality, safety and affordability and the prime priorities. While shared risk plays part in mitigating financial and clinical threats physician-hospital alignment is involved in creating favorable working surroundings for the achievement of common goals. Ultimately, this result in improved quality, affordability due to the operational costs reduction, physician’s satisfaction, efficiency and financial stability as the market is secured.
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