Emergency Medicine | Practice Management –vs– Contract Management

Have you ever found yourself wondering what the differences between a practice management organization and a contract management organization are? How do they relate to emergency medicine?

In both scenarios, emergency medicine physicians are able to focus on practicing medicine, while reaping the benefits of business experts working to improve patient satisfaction, productivity, reduce delays, promote communication, and manage utilization.

On the surface these management styles can seem very similar, but upon a closer inspection you will find that they operate in very different ways.

Practice Management:

Professional practice management organizations are dedicated to meeting the needs of physicians by assisting physician-owned groups to build their practice or taking existing group’s operation to the next level. ¹

In this scenario, a physician-owned group owns a contract with a hospital and they’ve hired a practice management organization to assist them in the daily operations of their practice.

What does this mean?

You will by employed by physician-owned groups or, in some cases, work as an independent contractor for these groups.

The organization adjusts their range of services according to the needs of each independent, physician group.

The organization provides consultative advice on hiring, compensation, scheduling, etc. to physician group owners/partners who ultimately maintain control of their practice.

When employed by a physician-owned group you have many opportunities for career advancement, including ownership or partnership.

Contract Management:

Contract management organizations are dedicated to developing teams of healthcare professionals, while providing a pool of resources, infrastructure, and best practices.

In this scenario, a contract management organization owns multiple contracts with a variety of hospitals to staff specific departments and then employs physicians to work for them in these departments.

What does this mean?

You will by employed by the contract management organization.

The organization runs each hospital contract in a similar manner.

The organization maintains control of the practice, lending to the perception that physicians lose a considerable amount of autonomy. ²

No one can tell you which management style is best for you and your career path, however, taking a good look at your career goals and objectives is the right place to start.

Begin your job search today by browsing EMrecruits' available physician and advanced practice provider openings.

¹Source: PSR

²Source: EMRA

Direct Access to Dynamic, Independent Private Practices in the Best Locations

EMrecruits Blog