Professional Services Agreeement Gets to the Heart of Hospital's Deal

Client Profile

Industry: Healthcare
Entity Type: Not-for-Profit
Number of Beds: 491
Geographic Footprint: Tallahassee, FL

CBIZ helps hospitals work out practice arrangements, includings PSAs.Issue

A hospital had an opportunity to form a relationship with a group of community cardiologists to meet the needs of its patients. The healthcare organization first explored an employment relationship but found some of the economic benefits the cardiologists enjoyed in private practice were not services that the physicians could be compensated for as employees of the hospital.

Solution

Working with organization management and its legal team, CBIZ introduced the idea of a Professional Services Agreement (PSA) to meet the needs of both the hospital and the cardiology group. The PSA established an arrangement where the healthcare organization contracted with the cardiology group for specific services while picking up the administrative costs that the cardiology group had been incurring. This allowed the cardiology group to continue its care delivery models, which used physician assistants and nurse practitioners to reduce cost and improve access to care and quality of care. The PSA also eliminated or reduced other obstacles that would have made a traditional acquisition complicated and time-consuming

Outcome

Using a PSA allowed the hospital to access a stable cardiology workforce that could help the organization meet market demands and build a premier heart program. From the cardiology group’s perspective, the PSA afforded greater stability and a larger recruiting arm than what the practice could have managed solo.

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CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).

Professional Services Agreeement Gets to the Heart of Hospital's DealCBIZ helped a cardiologist practice work out an ideal practice configuration....2016-09-01T17:44:00-05:00CBIZ helped a cardiologist practice work out an ideal practice configuration.Regulatory, Compliance, & LegislativeHealth Care Consulting