Paying for Call Coverage Using Combination Payments

Posted on
March 17, 2015

It is not uncommon for hospitals to experience a cascade effect once they start compensating for call coverage

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Written by Julia Ogburn

It is not uncommon for hospitals to experience a cascade effect once they start compensating for call coverage. However, it is generally not commercially reasonable to pay for all services. For example, 75% of hospitals report paying for general surgery while only 3% of hospitals report paying for podiatry call coverage. Just because a physician asks to be paid, does not mean it is commercially reasonable or necessary to pay. Navigating these negotiations can be difficult if the relationships are highly political or tenuous.

Despite the increasing pressure to pay for emergency coverage across multiple specialties, it is possible to find middle ground with physicians on this issue that addresses the physicians' need to be recognized for the time and service and the hospital's need for coverage. Here are some suggestions to consider for your organization.

Combination Payments
Another tactic to address costs can be to pay a lower per diem plus a per episode rate or uncompensated care rate as a second method. Hospitals should consider the overall estimated payments under the combination in order to assess the reasonableness of a combination of payment methods. MD Ranger reports the percent of facilities that have a second payment rate for call coverage services.

If you have any questions about what call coverage alternative might be best for your facility, email our team at info@mdranger.com.

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