Weighing Co-Management Arrangements in Health Care


Paul A. Gomez, a Member of the Firm in the Health Care and Life Sciences and Corporate Services practices, in the firm’s Los Angeles office, authored an article in Law360, titled “Weighing Co-Management Arrangements in Health Care.” (Read the full version — subscription required.)

Following is an excerpt:

For years many stakeholders in the health care industry have understood and accepted that payment models and methodologies are changing, moving toward a more value and accountability-based payment system. Notwithstanding, there has been significant disparity of opinion as to how they would change, how fast they would change or what the degree of the change would ultimately be.

Consequently, many moved somewhat cautiously toward acquisitions, alignment structures and affiliations that would help them gradually better position themselves for a changing payment landscape, watching closely to gauge when the seemingly inevitable “tipping point” in the move toward a majority value-based payment system would be reached.

It appears that the time for waiting to see how quickly that “tipping point” may be reached is over. Among many other developments, significant statements in January from the U.S. Department of Health and Human Services and Health Care Transformation Task Force, a private consortium of major health systems, payors, patients and employers, made plain that to many the degree of commitment and resolution dedicated to expanding value-based payment models within the immediate and near future.