Physician-Hospital Organization

What Does Physician-Hospital Organization Mean?

A physician-hospital organization (PHO) is an informal or legal entity that links hospitals with their medical staff.

Although their structure can vary, PHOs are typically formed to enable physicians to jointly own a hospital. These organizations may be open to all hospital staff members, or they may be closed to those who do not qualify or belong to an over-represented specialty.

Insuranceopedia Explains Physician-Hospital Organization

The first PHOs were established in the early 1990s by hospitals seeking to build strong partnerships with their physicians to offer full-service managed care.

Specialist physicians are typically not offered ownership in a PHO. Although hospitals operating under the PHO model do collaborate with and provide care through surgeons, cardiologists, radiologists, and other specialists, these professionals are usually contracted to deliver treatment to patients.

Premiums for physicians vary widely by specialty, and how much doctors and physicians insurance costs depends partly on whether the doctor practices through a PHO or runs an independent office. Those who go the independent route also tend to need medical office insurance for the building and equipment at their clinic.