5 Areas to Consider When Structuring Subsidy Arrangements

5 Areas to Consider When Structuring Subsidy Arrangements

  • October 10, 2023

From an economic standpoint, independent practices increasingly depend on hospital support to attract and retain high-quality providers and ensure market-based wages are available to providers. Based on our extensive experience working with hundreds of hospitals across the U.S., it is common for hospitals to provide a financial subsidy for their hospital-based professional service arrangements. Services with the largest provider footprint, such as hospital medicine and anesthesia, typically require higher levels of support. In contrast, other services, such as emergency medicine, need less (or sometimes no) financial support.

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