A proposal by the Hospital Association of Southern California (HASC) calls for the formation of a single foundation that would supply hospitals in the area with physicians and centralized administrative functions. The foundation would work with various physician groups and contract physicians on behalf of several hospitals. HASC says that the creation of a single foundation working with several hospitals, which is different from the current system where each hospital usually has its own foundation, would promote efficiency and better coordinated care.
The plan has raised some concerns from those who believe that the plan limits competition by area physicians who are not part of the foundation. HASC argues that competition will not be harmed since hospitals would not acquire their whole workforce from the foundation. The foundation will primarily help smaller facilities that have a harder time recruiting physicians.
The proposed plan has not been passed, but it does highlight the changing relationships between hospitals and physicians and the impact that it can have on the healthcare market.
The following article from The Wall Street Journal outlines the HASC plan and the arguments for and against it: http://online.wsj.com/article/SB20001424052748703950804575242612111844970.html
Source: The Wall Street Journal