This model allows independent physicians to sell their practices to a medical foundation in other to conveniently provide their professional services. In other words, the medical foundation is a third party payer to physicians employed in the hospital and independently practices physicians. In general, medical foundations are a mechanism allowing hospitals and certain other health care providers. Also, it provides more flexibility for hospitals seeking to directly employ physicians and other providers. The cons to this model is the fact that they are prohibited from engaging in any business other than rendering that health services for which it was specifically incorporated. “The pros are that medical foundation does not prohibit investigating its funds in real estate, mortgages, stocks, bonds and/or other type of investments or from owning real or personal property incidental to rendering professional services. Example; the state of California generally prohibits the cooperate practice of medicine invariably not allowing hospitals or other cooperation’s from directly employing physicians” (James Orlando, …show more content…
This model allows primary care physician coordinates patient treatment to ensure that it is timely, cost-effective and personalized. With the Accountable Care Organizations, patients participating in primary care physicians are attributed to the organization. Combined to the shared savings, payment are calculated based on the spending of actual beneficiaries thus, the more patient that are enrolled in the Accountable Care Organization, the larger it’s potential financial gain. Elaborating on the Medicare Shares Savings Program, an alternate approach to the current health system alternative approaches to the current health system is the Accountable Care Organizations need to recruit primary care physician in their network. If a local health system lacks strong physician relationships as in formal alignment arrangements, it risks losing its primary care physicians to the Accountable Care Organization and the competing health system. The question of why it matters is the fact that primary care physicians who join the Accountable Care Organization begin operating within that network, including passing referrals to participating specialist. Furthermore, in the case of payment reform, the primary care physicians are essential to preventive care. Be it an Accountable Care Organization sponsors, planning to develop, or not interested, at the end of the day, the physician network strategy that features