Foundation Model in Hospital Management

The Foundation Model can be an appealing approach for physicians who perceive direct employment would result in loss of independence and autonomy.

There are added legal implications to this model which cannot be overlooked and tend to make this model more cumbersome to execute and maintain.
The Foundation owns the clinics, the revenue stream and the insurance contracts. The physician group may find the lack of control over the revenue stream and insurance contract to be a dis-incentive to pursuing this model.

The physician group contracting to provide professional services to the Foundation clinics is responsible for developing and managing their own compensation model. Since the physician group has a separate management infrastructure than the Foundation under this model there is the inherent risk that the goals of the physician group and the goals of the Foundation may shift out of alignment. If this occurs the relationship between the physician group and the Foundation may be at risk. The two parties would need to work hard to maintain alignment in order for this model to succeed.