The healthcare landscape is changing rapidly. To stay ahead, providers can no longer operate in isolation. One way hospital leaders are embracing collaboration is through strategic partnerships. This approach has become a leading strategy to help curb rising costs while simultaneously improving quality and meeting the needs of a growing patient population with complex medical conditions.
Discover the top partnership models and structures available to improve patient outcomes and streamline hospital operations while maintaining financial stability.
Key Partnership Models
While mergers and acquisitions are often the most talked about partnership types, there are other proven models that can more effectively meet a hospital's specific needs. Two key models include:
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Contract management agreement: This model is ideal for hospitals that want to retain full ownership while also tapping into the expertise of a focused partner. The right contract management partner should offer multiple management options for maximum flexibility.
For example, a management agreement can be as simple as providing a unit's medical director or as comprehensive as managing all operational aspects, including staff hiring and training. This model is also a great starting point when considering a long-term partner, giving both parties time to confirm they're a good fit before moving into a joint venture or merger.
- Joint venture (JV): This option allows local hospitals to maintain governance and partial control while assigning the operational and clinical responsibility of one or more service lines to a trusted partner. A JV combines the strengths of both parties, bringing in specialized expertise, resources and skills to elevate a hospital's current offerings and expand patient access. By joining forces, hospitals gain greater buying power and additional expertise to expand services and create more opportunities for employees.
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Innovative Partnership Structures
Partnership often leads to service expansion to meet community needs. However, expansion does not always require a new freestanding building. There are creative, cost-effective ways to expand services without requiring extensive capital.
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- Hospital-in-hospital (HiH): A HiH is a separate hospital located within the four walls of another hospital in a distinct building on the same campus. The HiH, or “co-location” model, can mitigate the risk and challenges of patient transfers and reduce the length of stay (LOS) by providing advanced care from multiple specialties under one roof. A significant benefit of the HiH is that it optimizes existing space and doesn't require extensive capital, while also allowing for future flexibility as patient needs evolve.
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Specialized post-acute care unit: Similar to the HiH, a specialized hospital unit – such as an acute rehabilitation unit (ARU) or behavioral health unit (BHU) – allows for more refined clinical and operational processes to be conducted within a hospital.
These units are equipped with specialized resources, like 24/7 physician oversight, nurses specializing in complex patient needs, and a dedicated interdisciplinary care team. Offering a specialized unit helps maintain care continuity and minimizes transfers, all of which lead to better outcomes and greater patient satisfaction.
- Freestanding hospital: There are numerous benefits to building a freestanding facility for one or more specialty services. This method increases bed capacity and relieves strain on existing hospital resources. It also allows patients to receive timely care in a hospital specifically designed and trained to meet their unique needs. Adding a freestanding specialty hospital can expand community access to needed services.
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How Lifepoint Can Help
With flexible partnership options that span the full spectrum from pre-acute to post-acute, Lifepoint Rehabilitation helps hospitals enhance quality and operational efficiency while expanding patient access in their local communities.
Contact us to learn which partnership model can help address the unique needs of your community.
