Smaller orthopedic practices may want to explore partnering with a hospital, but it should be done carefully, according to Bruce Prager, MD.
Dr. Prager, of Orthopedic Center of Arlington in Texas, shared his advice for orthopedic practices considering hospital partnerships.
Question: What should smaller practices know before entering a hospital partnership?
Dr. Bruce Prager: Smaller practices are at a definite disadvantage when dealing with a hospital. If the hospital becomes the owner of the practice it can be in several different forms: own the entire practice 100 percent or own some portion of the practice — the non-physician employees, the lease and the EMR. Either way the physician loses control and needs to have some safeguard in effect. This could be some contract that covers a certain number of years. The physician needs to make sure there is no noncompete clause. If not then the hospital can unilaterally force the doctors to move at the end of the contract leaving them with nothing but their names.
There should also be mediation in all contracts if there is a disagreement because these arrangements are evolving. Hospitals have too many resources and may at the end of the day decide to terminate the agreement.