Generally speaking, hospitals see higher reimbursement for outpatient rehab than private practice does. While not always the case, fee schedules seem to favor hospitals. In preparation for ACOs and other changes in healthcare delivery, hospitals are more aggressively seeking to provide “continuum of care” services. This is great time to consider a strategy that would align your business with a hospital.
Private Practice Expertise Matters
Last Friday, CMS issued a proposed rule that would increase Medicare payments to hospital outpatient departments by 2.1% in 2013. Sounds like a win for hospitals! But the truth is that many hospitals don’t understand the outpatient market very well. You as a private practice owner do.
Timing is Perfect
The remainder of 2012 is a great time to consider a strategy to align your business with a hospital. This can be done in a number of ways: contracts, sale, joint ventures or a combination of the three. The bigger you are and the broader your service area is, the more receptive a hospital will be to an alignment. The key is to get to your local hospital and find out what their strategy is for outpatient rehab.
Remember, you have the expertise hospitals need. You are looking to ALIGN with a hospital. We are not advocating a “fire sale” to the hospital. Developing a relationship with hospitals can take some time, but the effort can be well worth it in the long run.
Give me a call at 856-914-1440. We at Martin Healthcare Advisors are always happy to have a conversation around strategy.