Group of businesspeople walking to corporate jet

Professional healthcare direction arrangements have a long history, dating dorsum to the founding of HCA and Tenet Healthcare in the 1960s. These arrangements are now widespread. Wellness systems and professional management companies are managing hospitals, dr. practices, and articulation ventures.

The term "management" can create a fair amount of defoliation in the context ofbusiness organizationdirection services,clinicalmanagement and co-management, andpopulation healthmanagement.  Professional person business organization management arrangements in healthcare are characterized every bit those administrative services which do not crave a licensed physician.

1-Yr Subscription: $ii,750

Some of the most mutual features of business concern management services are:

  • A regional director or vice-president with oversight over five to 12 business organization units
  • A defended corporate accountant who prepares monthly bookkeeping and management reports for five to 10 business units
  • Ready access to corporate directors, vice-presidents, and/or analysts in the areas of
    • Managed care contracting
    • Materials and supply chain management
    • Revenue cycle services
    • Clinical quality balls
    • Human resources
    • Business organization development
    • Legal counsel

While management clients may not take a need to use all of the available direction services on a regular footing, the services are always available to them.

Dictation, coding, billing, and staff leasing services are usually billed separately from management services. The management services are unremarkably billed equally a fixed percentage of the revenues of the direction client business. For instance, a health arrangement-affiliated management visitor may accuse physician practices 5% of internet revenue for management services and a separate 6% of internet revenue for billing services.

Demo | Md Group Practice Management Fee Data

The scatterplot below illustrates the fairly linear human relationship between the revenues of 293 managed healthcare businesses and the annual direction fees charged to those businesses in 2014.  This sample includes managed hospitals, skilled nursing facilities (SNFs), and domicile health agencies (HHAs).

healthcare-management-arrangement-fees

This information indicates that market direction fee rates tend to decrease for larger direction clients.  So a surgical infirmary with $65 million in annual revenue may but be charged a 2% management fee.  By comparison, a small dwelling house wellness bureau with $2 million in annual revenues may be charged a 7% management fee.  This tendency is evident in physician practice and convalescent service management arrangements in the chart below.

Demo | Hospital Direction Fee Information

Skilled nursing facilities (SNFs) demonstrate some of the nigh consistent professional person direction fees observed across healthcare sub-sectors.  As evidenced in the table below, SNF management fees are tightly amassed between v% and half dozen% of full almanac internet patient revenues.

Demo | Skilled Nursing Facility (SNF) Direction Fee Data

It is of import non to undercharge or overcharge direction fees when parties with referral relationships are involved (e.g., hospitals and dr. practices).  Underpricing management services charged to referral sources, or overpricing management services charged by referral sources, could be construed as an inducement for referrals under the Anti-Kickback Statute.

one-Yr Subscription: $2,750

Healthcare organizations should carefully consider the range of management fees observed in the market for managed organizations of similar sizes, also as the scope of the direction services included in the subject system.

HCTadvisor has collected bounty information for over xv,000 healthcare management bounty arrangements, including hospitals, SNFs, physician practices, renal dialysis centers, home health and hospice, and other types of healthcare organizations. This data subscription is updated quarterly.

If you would like to license the healthcare management fee data set, delight contact HCTadvisor at 303-800-6444.

Demo | Renal Dialysis Direction Fee Data