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McDermott Outlines Physician Alignment Strategies Amid Payment Pressures
McDermott Will & Emery published guidance for hospitals and health systems on physician alignment models under current financial constraints, including Medicaid funding reductions, 340B uncertainty, and site-neutral payment expansion. The analysis covers alternative structures to traditional employment models that may preserve margin while maintaining physician relationships. The guidance is aimed at hospital CFOs and strategic planning teams navigating payment model transitions.
Why it mattersMedicaid managed care organizations contracting with hospitals employing large physician groups need to understand how provider network composition may shift as hospitals restructure physician relationships in response to state funding cuts and federal payment policy changes.