The Multidimensional Due Diligence (MD-DD™) Tool
In 2018, for the first time, according to the AMA Benchmark Survey, there were fewer physician owned practices (45.9%) than employed physician arrangements (47.4%) nationwide.1 This trend accelerated in 2020 during the pandemic with more than 50% of physicians reporting being employed versus working in a physician owned private practice.2
Whether our clients are physicians in private practice contemplating a new partner, or a health system considering bringing physicians on board as employees or incorporating their practices into the organization, the MD-DD™ tool provides a structured framework to evaluate four key elements in a Multidimensional Due Diligence process: Patient as Consumer, Clinical Operations, Revenue Cycle Management and Organizational Culture which is at the heart of the MD-DD™ evaluation.
The MD-DD™ tool guides clients through a comprehensive assessment of capabilities and culture of a potential partner organization. The MD-DD™ tool can be used on its own or along with the industry expert advisory services provided by Hopkins Tirrell & Associates.
Patient as Consumer
Patients are increasingly savvy consumers of medical care looking for ease of access, a positive patient experience, affordable costs, flexible and safe locations plus convenient channels like telemedicine. Patients expect value and physicians who receive great reviews and whom they can trust. The MD-DD™ tool helps clients walk through key questions to determine how well a potential partner stacks up when it comes to the Patient as Consumer.
Clinical Operations
A physician’s current practice situation may be challenged operationally however when joining a potential partner, they should ask how well run and supported are medical practice clinical operations. The MD-DD™ tool helps clients identify how patients are scheduled and patient panels are managed, how useful and available EHR data is for physicians and whether the physician and clinical support team members are working to the top of their licenses.
Revenue Cycle Management
Many healthcare organizations underestimate the complexity of medical practice revenue cycle challenges. From patient scheduling to charge capture and collections, it is important to understand a potential partner’s medical practice RCM performance. When it comes to provider enrollment and payor contracting, the MD-DD™ tool also helps determine whether physician practice payments are a priority.
Culture
Organization Culture is at the heart of the multidimensional due diligence process. The MD-DD™ Tool helps clients assess shared values, partnership philosophy and physician leadership advocacy. Compensation plans are reviewed for cultural factors including fairness and equitability, as well as viability. How the potential partner rates when it comes to a culture of physician health and well-being rounds out the MD-DD™ tool’s methodology.
Learn more about this tool
References
- “Should I Stay or Should I Let It Go? Accelerating Physician Partnerships In a Pandemic,” Amanda Hopkins Tirrell, MBA, FACHE and Saria Saccocia, MD FAACP MHA (March 2021)
- “Recent Changes in Physician Practice Arrangements: Private Practice Dropped to Less than 50% in 2020,” AMA Health Policy and Economic Research, C. Kane PhD (May 2021)