As the healthcare industry evolves, physicians and hospitals seek new models to enhance collaboration. One such model is a physician hospital organization (PHO). A PHO serves as a strategic alliance. It helps streamline operations, improve quality of care, and deliver better health outcomes for patients. Given the need for efficient and effective healthcare, it's important to understand how these organizations work.
In this article, we'll explore the function, purpose, and benefits of PHOs.
In this blog post, you'll learn the following:
- The difference between a PHO and a physician-led hospital.
- Why a PHO is beneficial for healthcare professionals.
- How a PHO offers advantages to patients when it comes to their medical care.
A PHO is a formal alliance between hospitals and physicians. It aims to improve the coordination of healthcare services and enhance patients’ quality of care. PHOs function as a collaborative network that combines the resources and clinical expertise of healthcare providers. This allows them to deliver integrated and efficient medical care.
It's important to note that a PHO and a physician-led hospital aren't the same thing. Physicians own physician-led hospitals, which have a strong focus on the patient-physician relationship.
There are more than 200 physician-led hospitals1 across the nation. They come in a variety of forms:
PHOs negotiate contracts with payers (insurance companies) to provide a comprehensive package of services. These services can include bundled payments or global budgets. This care contracting arrangement incentivizes providers to focus on quality and cost-effective care.
PHOs also facilitate the coordination of care across different settings and providers. This ensures that patients receive seamless transitions between primary medical care, specialty care, and hospital services. This involves sharing patient information and enhancing communication among providers.
A PHO acts as a bridge in the healthcare industry. It brings together a network of healthcare providers to better manage patient care. It also allows healthare providers to negotiate better agreements with managed care. With its large network of physicians and hospitals, a PHO is a valuable partner for health plans on patient care initiatives.
Working with a PHO offers advantages for doctors when it comes to patient care and business. As part of an integrated provider group, they can better controll costs, improve quality, and enhance patient satisfaction. They can also recieve performance incentives for providing better care at lower costs. This is known as pay-for-performance, value-based reimbursement, value-based model, or value-based care2.
PHOs3 may also offer growing practice management support, including administrative and technology solutions that small practices may lack.
These solutions can include:
PHOs address several concerns for patients4, like rising healthcare costs, poor care quality, and overall access to care.
PHOs also offer several benefits to patients, such as:
A PHO is a collaborative legal entity designed to enhance healthcare delivery through joint efforts among hospitals and physicians. It aims for improved quality, increased efficiency, and reduced overall healthcare costs. Whether you're a patient, healthcare professional, or administrator, understanding PHOs can offer valuable insights into how medical care is evolving.
This blog article was originally published on January 20, 2013. It was last updated on September 11, 2024.