HOME HELP FEEDBACK SUBSCRIPTIONS ARCHIVE SEARCH TABLE OF CONTENTS		QUICK SEARCH:   [advanced] Author: Keyword(s): Year:  Vol:  Page:

This Article Figures Only Full Text Full Text (PDF) TRACK Discussion: Submit a Comment TRACK Discussion: View Comments Alert me when this article is cited Alert me when TRACK Comments are posted Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Similar articles in PubMed Download to citation manager Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Magill, M. K. Articles by Terry, S. A. Search for Related Content PubMed PubMed Citation Articles by Magill, M. K. Articles by Terry, S. A. Related Collections Health policy Health services Organizational / practice change

Successful Turnaround of a University-Owned, Community-Based, Multidisciplinary Practice Network

¹ Department of Family and Preventive Medicine, University of Utah School of Medicine, Salt Lake City, Utah
² Community Physician Group, University of Utah Hospitals and Clinics, Salt Lake City, Utah
³ Community Clinics, University of Utah Hospitals and Clinics, Salt Lake City, Utah
⁴ Ambulatory Services, University of Utah Hospitals and Clinics, Salt Lake City, Utah

CORRESPONDING AUTHOR: Michael K. Magill, MD 375 Chipeta Way, Suite A Salt Lake City, UT 84108 Michael.Magill{at}hsc.utah.edu

PURPOSE The University of Utah purchased a 100-clinician, 9-practice multi-specialty primary care network in 1998. The university projected the network to earn a profit the first year of its ownership in a market with growing capitation; however, capitation declined and the network incurred up to a $21 million operating loss per year. This case study describes the financial turnaround of the network.

METHODS In 2001, the university reconfigured the practices for a fee-for-service environment while preserving the group’s multidisciplinary clinical and ancillary services. Changes included reorganization under the existing University of Utah Hospitals and Clinics system, new governance and leadership, closure of practices, creation of a billing office, new financial reporting, implementation of electronic health records, revision of physician compensation, capture of referrals, leadership and staff training, and practice reengineering.

RESULTS The network as a whole became profitable in 2004–2005. Its primary care component is projected to become profitable in 2 to 3 years. The network is opening new sites strategically important to the health system.

CONCLUSIONS This turnaround required commitment from senior university leaders, management with knowledge of primary care practice, retention of ancillary revenues, and management and business services specific to the network with support from other units within the university. Culture change within the group was essential. Our experience suggests that an academic health center can successfully operate a primary care network by attending to the unique needs of this challenging business. Doing so can strengthen the institution’s overall financial and clinical performance and provide an important setting for teaching and research.

Key Words: Financial performance • economics • fee for service • academic health centers • health care systems • organizational change • primary care • organization and administration

This article has been cited by other articles:

				K. C. Stange In This Issue: Capacity for Caring and Generating New Knowledge Ann. Fam. Med, September 1, 2006; 4(5): 386 - 388. [Full Text] [PDF]

				W. P. Newton and C. A. DuBard Shaping the Future of Academic Health Centers: The Potential Contributions of Departments of Family Medicine Ann. Fam. Med, September 1, 2006; 4(suppl_1): S2 - S11. [Abstract] [Full Text] [PDF]

				R. D. Krugman The Utah Primary Care Experience Ann. Fam. Med, September 1, 2006; 4(suppl_1): S19 - S21. [Full Text] [PDF]

TRACK Comments: