Physician-Hospital Alignment and Compensation Models: The Second Generation

The current era of healthcare alignment among physicians, hospitals, and outside independent investors has been underway for 10-15 years. Given this, many of the original contracts that formed the basis of these arrangements have (or will soon) expire. Thus, we refer to these new deals as "second generation" transactions.

As the system moves toward a more value-based, fee-for-value reimbursement environment, newer alignment vehicles, such as accountable care organizations (ACOs), clinically...