Restructuring (& Divestiture) Phase – As employed physician networks mature, many existing networks simply don’t work. Hospitals become unhappy with the level of operating losses and ballooning overhead of operations. Physicians become unhappy with increasing workloads without additional compensation in addition to loss of autonomy in day-to-day operations. A fresh approach is needed—beyond the typical restructuring of governance compensation and management. Delta offers fresh models based on innovative paradigms.
Restructuring (& Divestiture) Phase
Network Performance Assessment
As networks mature, performance concerns often arise. While hospitals expect to lose money by employing physicians, they usually discover that losses are much higher than anticipated. A comprehensive “bottom-to-top” assessment of the network’s organization, structure and performance provides a pathway to restructuring options that can reduce operating losses to a sustainable level. Delta’s experience provides a pathway through these difficult situations.
Compensation Restructuring
Compensation Restructuring is the solution du jour for underperforming networks, yet not always effective. Issues with physician compensation often have roots in complex and confusing structures that lack attainable or measurable incentives. Delta’s solutions go well-beyond typical restructuring, seeking instead to foster simplicity, measurability and sustainability.
Network Restructuring
Reaching the tipping point, where an existing network is no longer sustainable, often leads to rash decisions. Future repercussions must be fully considered before actions are taken. Sometimes network management departs out of frustration, sometimes there are terminations—we’ve seen it all. Delta’s experience will help soften the potential fallout. We can provide interim management solutions to help navigate these difficult situations. Sometimes they can be avoided if experienced support, such as Delta, is brought in before it’s too late.
Divestiture
Holding on to dissatisfied and unhappy physicians is a common mistake. In reality, certain physicians in certain specialties will thrive as part of a hospital network while practicing either independently or though “intermediate” organizational models outside the existing network. Delta advocates for these types of innovative solutions based on experience in working with both hospitals and physicians. We understand the needs of both sides.
