Physician Relations


Historically, most hospitals have had a physician relations program.  In most cases, it operated either within the marketing department, the medical staff office, or reported directly to the CEO.  The Physician Liaison had the responsibility for maintaining contact with the members of the medical staff and their office employees.  Few programs enabled the Liaison to produce measurable results,  and physician practices had few, if any, complex needs or issues. 

Times changed.  In the 1990s, the emphasis of hospitals shifted to the primary care gatekeeper, and most of the available financial resources were shifted to acquiring physician practices or recruiting new primary care physicians to the service area.  Many hospitals terminated their physician liaison programs as a result of “accountability mentality”.  The programs produced few measurable benefits and were, therefore, expendable.  The importance of maintaining strong relationships with physicians has not gone away, however, and may actually be more important than ever.

As hospitals have moved away from the affiliated physician model, where physicians are employed by the hospital, they needed a way to maintain a strong relationship with their medical staff.  Physician relations, and physician liaisons, became an important issue again.  Hospitals had to find a way to maintain high physician satisfaction levels, and ultimately, to ensure that their hospital volumes increased, or at least were protected against other hospitals in the area.  By 2004, 32% of hospital CEOs ranked hospital/physician relations in their top three concerns.

According to a national study conducted by Merritt, Hawkins, and Associates in 2004, the average specialist generates $1,915,524 in revenue for a hospital every year.  Primary care physicians generate an average of $1,596,852 each year.  Any hospital that can maintain their current admission bases while increasing the volumes of just a few key physicians can realize significant improvements to their revenue.   

Did you know?
According to studies, physicians still control 70% to 80% of where patients go for outpatient procedures, where they're admitted for in-patient hospital care and what specialists they see.- "Physician Marketing: Not Overlooking the Obvious" - HealthLeaders October 17, 2001.

Effective physician relations programs seek to not only measure physicians' satisfaction with the hospital, but they actively work to improve relations.  An effective physician liaison serves as the community physicians' link to the hospital and its resources.  At the same time, the physicians are an important resource to the hospital- and not just for the admissions they bring to the hospital.  Physicians are an important customer of the hospital.  As such, they are in constant contact with hospital staff and departments, and can provide important feedback to the liaison regarding the level of service being provided to them, and ultimately the patients.  Physicians can also serve as a sounding board for new initiatives or programs that the hospital is considering.

To efficiently provide all of these services, a liaison must be well organized and must have access to data.  Med-Track was designed from day one with these goals in mind.  The system assembles important data regarding physicians, their practices, their hospital volumes, their financial impact on the hospital, and their thoughts and ideas regarding the hospital's performance.  By combining this data, the physician liaison can generate outcomes reports, monitor their relationships  with physicians, and identify new opportunities.

The primary force behind Med-Track is The Horizon Group, a healthcare consulting firm based in Virginia Beach, Virginia.  For the past 12 years, management consultants from The Horizon Group have assisted hospitals and physicians throughout the country.  Many of their projects have been to develop hospital/ physician relations departments, as well as conducting medical staff development plans. 

The Horizon Group has an unparalleled understanding of the dynamics in the relationship between physicians and organizations, such as hospitals.  This expertise has been instrumental in the development of Med-Track™.  It may also be able to help your organization.   If you are interested in the services available from The Horizon Group, you may contact them at clientservices@thehorizongroup.com



Physician Liaison and Relations Information from The Horizon Group:

Developing a Successful Physician Relations Program 

Revisiting Physician Relationships

Liaison Program Overview

"Can Oil and Water Ever Mix? Strategies for Developing and Maintaining Effective Hospital-Physician Relationships"- by Gregory Mertz SPECTRUM January/February 2005

Other physician liaison program resources:

"CEO's Guide to Winning Physician Relations"- by Paula Dewitt, for HealthLeaders News July 15, 2005

"CRM: From Evolution to Revolution"- by John Hallick, for SPECTRUM, July/August 2005

"Four Reasons You Need a Hospital Sales Force"- by Preston Gee, for HealthLeaders News February 4, 2005

"Physician marketing: Not Overlooking the Obvious" - by Daniel Fell, for HealthLeaders.com, October 17, 2001

"Can Hospital Advertising Dollars be Better Spent?" - by Anthony Cirillo, for HealthLeaders News, June 2, 2004

 












Physician Relations Named to MGMA's Top 10

In the January 2005 issue of the Medical Group Management Association's (MGMA) Connexion magazine, MGMA President William Jessee, MD included hospital relationships with medical groups to his list of the top 10 priorities for 2005.



PSR is a publisher and a book store for
practice managers, administrators,
hospital executives, physicians,
consultants, and other healthcare
professionals.  Their products include
many books that focus on physician
relations
.

PSR recently published an article
by Med-Track's Marc Mertz in
its Possibilities in Physician
Relations
 newsletter.  This
article outlined the development
of an effective physician liaison
program.