Health Care Management / Health Administration & Policy Mike La Penna brings an important perspective to a key shift in the structure of health care. Medical Staff —Larry Boress, President and CEO, Midwest Business Group on Health Mr. La Penna has outlined several of the models and structures that go well beyond the traditional medical staff relationships. —Robert Harison, MHA, PhD, President, Lake Michigan Colege Integration A survey of the 21 chapter titles gives a good clue to the superb information in this contemporary and masterful book. Transactions and Transformation —George O. Waring III, MD FACS, FRCOphth, Professor of Ophthalmology, Emeritus, Emory University ... a primer on how hospitals and doctors can fnd common ground to move from independence to collaboration to some level of true integration. —Ahmed Abdelsalam, MD, FACS, Managing Partner, Chicagoland Retinal Consultants, LLC This book suggests a number of ways to improve the reader’s chances of succeeding in the very complex world of the new medical staff. —William Cunningham, DO, MHA, Assistant Dean, College of Osteopathic Medicine, Michigan State University Medical Staff Integration: Transactions and Transformation examines the cultural and functional issues that must be addressed when hospitals and health systems purchase phy- sician practices. Written by a leading consultant in the health care industry, it covers the changes occurring in a nonjudgmental fashion and from a business case perspective. The book supplies an understanding of the basics behind the various types of relationships that are forming as well as the nuts and bolts of the transitions that will result. It focuses on the challenges readers will most likely face when merging systems, culture, and functions. Explaining how to ensure that the acquisitions will meet the needs of all parties, the book emphasizes the income determination structures required for the continued motivation of physicians. It addresses some of the limitations hospitals face with physician practice inte- grations and also discusses the growing role and impact of compliance. A companion website allows readers to download forms and models which can assist in the practical application of the ideas presented in the book. www.medicalstaffntegration.com K20588 60 Broken Sound Parkway, NW A. Michael La Penna Suite 300, Boca Raton, FL 33487 ISBN: 978-1-4665-9296-4 711 Third Avenue an informa business New York, NY 10017 90000 2 Park Square, Milton Park www.crcpress.com Abingdon, Oxon OX14 4RN, UK 9 781466 592964 www.produc t i v i t yp re s s .com K20588 cvr mech.indd 1 9/9/14 1:07 PM La Penna Medical Staff Integration Medical Staff Integration Transactions and Transformation Larry Boress, President and CEO, Midwest Business Group on Health “Mike La Penna brings an important perspective to a key shift in the structure of health care. Providers, payers, employers, and patients are greatly impacted by this shift from relative independence to integration, which has critical implications to the cost and quality of health care as we know it today.” Robert Harrison, MHA, PhD., President, Lake Michigan College; Former President of the Michigan Hospital Association and hospital board member “Tere is no more complex administrative environment than health care and no time when it has been more confusing and challenging. Mr. La Penna has outlined several of the models and structures that go well beyond the traditional medical staf relation- ships. His book is recommended reading for the practitioner, the administrator, and the board level stakeholders as they contemplate how to work together in the new health care environment.” George O. Waring III, MD, FACS, FRCOphth, Professor of Ophthalmology, Emeritus, Emory University; private clinical practice, Atlanta, GA “After 25 years of my seeking Michael La Penna’s counsel and direction in half a dozen diferent medical practice venues and models, I have learned to appreciate his incisive- ness, his conciseness, his analytical skills, his wisdom, and his dry humor. A survey of the 21 chapter titles gives a good clue to the superb information in this contemporary and masterful book.” Susan Mendelowitz, RN FACHE, President and COO, Bergen Regional Medical Center, Paramus, NJ Paul C. Mendelowitz, MD, MPH, Former Chief Medical Ofcer, Holy Name Medical Center, Teaneck, NJ “Mike La Penna is the consummate medical staf business consultant. His impressive depth of knowledge coupled with his common sense approach has led to successful resolu- tion of a broad array of issues we have faced in managing the business organization, compensation, and management of our physicians and their practices. His words of wisdom and advice regarding physician integration are welcome in this turbulent time of reform and aggregation of health care entities.” Dr. Anthony J. Gagliardi, MD, Vice President & Chief Medical Ofcer, New York Presbyterian Lower Manhattan Hospital and Charter Trustee of SERVITAS IPA of Greater New York “No health care environment is tougher than New York. When change occurs, it is rapid and dramatic. We look to experts who have a proven track record of managing change. Mike La Penna assisted us with the development of an IPA that numbered over 5,000 providers and a dozen institutions at a time when managed care frst emerged. He fashioned the governance as well as the value proposition for all of the stakeholders. I welcome any book that captures his expertise and experience.” Ahmed Abdelsalam, MD, FACS, Managing Partner of Chicagoland Retinal Consultants, LLC. “In this time of turmoil and turbulence in relations between hospitals and their medical staf members, and with all the diferent models emerging, it is a help to have a concise review of the options along with practical examples of structure, governance, and income distribution. Tis book is a primer on how hospitals and doctors can fnd common ground to move from independence to collaboration to some level of true integration.” William Cunningham, DO, MHA, Assistant Dean College of Osteopathic Medicine, Michigan State University “In the process of working in clinical and administrative medical positions for decades, I have had the pleasure of doing a number of joint projects with Mr. La Penna and his team. I am enthused to see that the experience and insight of his years of consulting in the hospital-physician ecosystem have fnally made it into print. Anyone who is working with physician transactions will fnd some solace in knowing that some of us have been there before! Tis book suggests a number of ways to improve the reader’s chances of suc- ceeding in the very complex world of the new medical staf.” Medical Staff Integration Transactions and Transformation A. Michael La Penna CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2015 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20140514 International Standard Book Number-13: 978-1-4665-9297-1 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmit- ted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright. com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Tis book is dedicated to my two younger physician-brothers, Bob and Bill. Both are healers and clinicians, frst and foremost, and each embodies the “old school” approach to medicine: “If you take care of the patient, everything else will take care of itself.” Both are graduates of the Michigan State School of Human Medicine, and both followed a path to interventional cardiology by way of Henry Ford. Each will be remembered by their patients as caring and compassionate physicians who spent their lives in the clinic, on call, and in consultation with other doctors, and, most importantly, with their patients and their families. No sense going through any kind of clinical or medical background on them except to remark that they are both rather naïve about the business side of the health care delivery system, and neither knows much about what this book is about, or cares. Bob is a master diagnostician when it comes to all things automotive, and Bill is the collector and curator of what is probably the most extensive collection * of brewerania in the United States. Both focus on being good fathers and great siblings. Neither of them cares whether he is “in” or “out” of whatever local “inte- grated” health care network is currently emerging (or diverging or destructing), but each is actively practicing as if the patient he is with is the only part of “population health” that matters. * Brewerania is the term for advertising paraphernalia related to brewing, breweries, and beer.