What is a PHO?

A PHO (Physician Hospital Organization) is a vehicle that enables hospitals and physicians to work cooperatively toward accomplishing several objectives. Primary purposes for forming a PHO are developing improved methods of health care delivery; overseeing integration of physicians and hospitals into health delivery networks; assisting in voluntary group formation; and collecting, analyzing, and disseminating information. Secondary purposes include contracting with managed care organizations with joint risk sharing, developing standards of care, and building trust between hospitals and independent physicians.

Advantages of a PHO

1. Provide an organized approach for physicians and hospitals to work together on managed care issues, such as utilization management and quality improvement.
2. Serve as a clearinghouse for certain administrative duties such as delegated credentialing and utilization management, thus, reducing the burden on the individual physician and hospital members.
3. Collaborating with managed care companies.
4. Establish reimbursement and risk-sharing approaches that align incentive among all physicians.

Crawford Mercy PHO Staff

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