Hospital-Based Service Line Optimization

  Advancing Operational Success with Hospital-Based Service Line Optimization

 

With increasing pressures on reimbursement, a shift in focus by payors to inpatient costs and outcomes, and consolidation in the physician market, health systems and hospitals face numerous demands in operating efficient and high-quality service lines. For many facilities, contracts for coverage of key service lines – anesthesiology, emergency medicine, intensive care units, hospitalist medicine, radiology, trauma centers, etc. – represent the single largest expense with outside physician vendors. What was previously a cost of doing business has become one of the primary drivers of a health system’s financial and operational success.

HealthCare Appraisers has consulted on thousands of hospital-based clinical coverage arrangements (“HBCCAs”) and has gained unmatched insight into the trends of HBCCAs. This knowledge has allowed our clients to remain competitive and financially healthy despite the ever increasing costs associated with HBCCAs.

Our team’s expertise extends to all areas of service line optimization, including service line assessments and Request for Proposal due diligence.

Service Line Assessment

Using our decades of experience and internal resources, our advisory services team offers thorough assessments of service lines to help our clients answer certain key questions regarding contract renegotiation or renewal, such as:

1. Benchmarking and staffing review, including:

a. Cash compensation and benefits;
b. Patient volume and work relative value units;
c. Other operating expenses, profit margins, and management fees; and
d. Professional collections;

2. Review of current contract, including:

a. Compensation structure; and
b. Quality Metric selection and compensation.

Request for Proposal (“RFP”) Due Diligence

Whether or not the decision to perform an RFP was made independently or as a result of guidance from our team of consultants, HealthCare Appraisers can help you navigate the sometimes daunting and complex RFP process. We can assist with reviewing each proposal, identifying strengths and weaknesses, and working with our clients to select a partner, not just another contractor. Our highlighted services include:

1. Assisting and creating the RFP questionnaire;
2. Coordinating responses and data provided by candidates;
3. Benchmarking and staffing review of each submission;
4. Summarizing and providing key recommendations on candidates;
5. Ensuring alignment with strategic goals; and (if requested)
6. Conducting a fair market value assessment of the selected RFP.

HBCCA Web Banner

  Read Our Latest Hospital-Based Service Line Optimization FMVantage Point™

Your Hospital-Based Service Line Optimization Expertise is here.

Our experts are available to speak with you at your convenience. With an exclusive focus on healthcare valuation and advisory, we offer highly specialized and targeted insight into each engagement.

Recent Insights

Navigating Healthcare Transactions: Lessons from a Case Study

Author: Nicholas J. Janiga, ASA, Daniel I. Levin, CFA, ASA and Robert J. Van Dusen, MSAQF Download the PDF BACKGROUND AND DESCRIPTION OF HIGHLIGHTED CASE In 2013, a health system (the “Health System”) initiated discussions with an ambulatory surgery center (“Center”)...

Quarterly Insights: Q3 2023

Monitoring Industry Activity from Quarter 3 of 2023 This article discusses ongoing disruption in the market for hospital-based physician staffing services, with multiple health system operators discussing their strategies and results with insourcing their coverage....

HealthCare Appraisers Announces New Partner

BOCA RATON, Fla., Jan. 3, 2024 – HealthCare Appraisers, an employee-owned, premier, national healthcare valuation and advisory firm, has named Jamie McIntyre, JD, as a Partner in the company. This promotion reflects McIntyre’s outstanding contributions, dedication,...

Healthcare Joint Ventures: Know the Value of Your Assets

Authors: Landon Forsythe, Matthew Muller, ASA and Nicholas J. Janiga, ASA Download the PDFThe healthcare industry is an economic sector that is constantly facing unique challenges. The industry is highly regulated with rules that frequently shift in a manner that...

Upcoming Events

Mar 6-7 | McDermott HPE Miami 2024

March 6-7, 2024 | Miami, FL HealthCare Appraisers' Partners Nicholas J. Janiga, ASA and Hunter M. Outcalt, MTX, CPA/ABV will be in attendance. About the Program Join McDermott to hear from and connect with leading investors, executives and founders who will share...

Mar 10-12 | ELFA Equipment Leasing and Finance Association

March 10-12, 2024 | New Orleans, LA HealthCare Appraisers' Director Kirsten Hodges, ASA and Director Jeffrey Doyle, ASA will be in attendance. About the Program GREAT SESSIONS that bring you up-to-date on a variety of asset classes OFF-SITE EQUIPMENT TOURS enabling...

Mar 12-13 | PBI Health Law Institute 2024

March 12-13, 2024 | Harrisburg, PA HealthCare Appraisers is proud to serve as a Silver Sponsor with Partner Fred Lara, CFA, ASA, CVA in attendance. About the Program Celebrate 30 Years of Excellence at PBI’s Health Law Institute 2024! Join us at the Hilton Harrisburg...

Apr 14-17 | HCCA 28th Annual Compliance Institute

April 14-17, 2024 | Nashville, TN HealthCare Appraisers attendees include Managing Partner, Daryl P. Johnson, MAcc, CVA, Manager, Jake Bitting and Manager, Rebecca J. Langford. We will be exhibiting at booth #626. Daryl P. Johnson, MAcc, CVA will be co-presending...