Physician-Hospital Arrangements and Their Models


Physician-health arrangements have changeable levels of common possession, supremacy and management. On this basis, there are varied models of new physician-hospital arrangements which include; physician-hospital organization, management services organization, and integrated health organization among others. In this study, two physician-hospital arrangements will be addressed. From evidences, it has been revealed that these preparations increase from “lower-order to higher-order” (Warden 56-84).

Main body

It is of importance to note that, physician-hospital organization (PHO) is a combined endeavor between one or more sanatorium and a collection of general practitioners. On this basis, this organization performs as the solitary representative for administered care constricting; presenting a joint front of payers. On the other hand, PHO has been found as a provider of organizational services, credential medical doctors and as a monitor of operation. In this relation, physician-hospital organization relates with physician-hospital by providing administrative services to the hospital (Cuellara, et al 1-28).

Additionally, this organization contracts for medical doctors and hospital services since its partners are physicians and hospitals. Moreover, PHO provides managed care which has executive power over the main health care services in therapeutic group practice. On this basis, the intentions of this care are to eradicate superfluous facilities and services as well as reducing costs. Under this arrangement, patients are allowed to pay a flat rate for essential family care but charged extra money for secondary care services. In this connection, this arrangement relates with physician-hospital in that; redundant facilities and services are removed and at the same time costs are reduced. On the other hand, PHO model provides management in services between medical practices and also plan for decision making in the hospital (Warden 56-84).

On the other hand, the other physician hospital arrangement is the integrated health organization which is a single lawful body constituting three parts. On this basis, these parts include; hospital corporation, medical services corporation, and educational and research foundation. It should be noted that, the integrated health organization and all its subsidiaries are free from tax and non profit (Cuellara, et al 1-28).

Additionally, this arrangement has a board which is controlled by physicians and employs them in order to take good care of the patients. It is of importance to note that, the physician-hospital relationships of these arrangements vary from one model to the other. In integrated health organization, physicians are the main partners and are employed by this body hence there is a relationship between the model and physicians as well as the hospital. In this case, this model employs physicians who have been found worthy to care for the patients and provide them with good care and facilities (Warden 56-84).

From a personal perspective, the integrated health organization is considered as the most effective since it caters for cost reduction in the hospitals and also employs physicians. Importantly, this model has educational and research subsidiary which acts in researching about patients and the diseases which affects them. On the other hand, this model has the hospital corporation subsidiary which relates very well with hospital matters and also physicians (Cuellara, et al. 1-28)


In winding up, physician-hospital arrangements have assisted physicians, patients and hospital in managing their activities and practices. In this case, a good relationship between the physician-hospital and the models has developed; where in integrated health organization, medical doctors are employed and managed by this model. Additionally, physicians have come together through these arrangements and decided to reduce costs incurred by patients in the hospitals.

Works cited

Cuellara, et al. “Strategic Integration of Hospitals and Physicians”. Journal of Health Economics vol. 25, issue, 2006, pages 1-28. Web.

Warden, Jay. “Creating Sustainable Physician-Hospital Strategies”, 1st edition. Chicago: Health Administration Press. (2008): 56-84.

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