As more physicians and hospitals pursue integration models that involve physicians being employed by hospitals or health system, those involved are learning that mere employment often is not sufficient to satisfy the needs of the physicians and hospitals. These needs include the direct involvement by the physicians and the hospitals, in a cooperative manner, not only to deliver physician services to their patients in a practice setting, but also to expand the physician's involvement into management of the hospital service lines.
A service line agreement, also referred to as a co-management agreement, is an agreement whereby the hospital's service line is managed by a group of physicians or a physician-hospital joint venture. In essence, service line agreements are financial arrangements with contractual obligations and allocated responsibilities that allow hospitals and physicians to work collaboratively to manage and improve an entire specific service line offered by the hospital.
The purpose of the AMA Annotated Model Co-Management Service Line Agreement is to provide a discussion of and sample language that benefits physicians entering into service line agreements with a hospital or health system.
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