The True Value of a Medical Group in an Integrated Health System

By Fred Horton, MHA, President, and Jill Powelson, DrPH, MPH, MBA, RN, CPC, CPPM

Over the past 30 years, rapid acquisition pace has in some cases led to a significant disconnect between the health system and the physician enterprise. In many cases, integrated medical groups feel devalued, health system leadership views the group as a financial failure, and overall, a gap or disconnect occurs between providers and organizational leadership. Health systems need to ensure that the right financial metrics are utilized to accurately evaluate medical group performance. Only through such an enlightened approach will health system leaders and providers be able to understand the contributions and value of a medical group.