Erlanger Health System will contract with a local physician group to provide hospitalists to the facility, board members were told Monday night.
The business plan states, "Erlanger currently employs the hospitalist physicians and will continue to employ the physicians under the proposed management agreement."
Since many physicians no longer make hospital visits to patients, hospitals have turned to staff physicians who make the rounds.
Kevin Spiegel, Erlanger president, said the new physician group is affiliated with Galen and Beacon, which he said are one of the largest local physician groups.
He said the new arrangement should better accommodate patient needs and create new efficiencies for the hospital.
He said the hospital visits would be better directed as needed.
Robert Brooks, Erlanger chief operating officer, said there will be incentives built into the contract.
He said if the incentives are met, it would be a boon for the hospital. He said, "It should pay off for us 10-fold."
The firm, MDP Management LLC, will provide managers for the program.
It will be paid $13,200 per month, with $145 per hour for the medical director.
Maximum pay-for-performance will be $200,000 per quarter.