Lit Review

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Literature Review: Economic Credentialing
With declining reimbursements and ever-increasing competition by privately owned specialty hospitals and ambulatory surgery centers, hospitals are employing new strategies in attempt to restrict physician competition. One of these tactics is economic credentialing. Physician credentialing is usually a product of qualified and objective peer review when quality of physician competence, quality of care and professional conduct are considered. According to American Medical Association’s definition, hospitals that engage in economic credentialing use “economic criteria unrelated to quality of care or professional competence” to evaluate their medical staff and grant or terminate medical staff membership and privileges. The credentialing process is then reduced to business decision, instead of professional evaluation based on medical standards. The initial goal of this literature review was to examine and discuss possible legal ramifications of these measures, however more thorough study of the available literature revealed additional issues that deserve to be discussed, such as definition of the term “economic credentialing” itself, different forms of economic credentialing policies or the future of economic credentialing in the context of the passage of the Patient Protection and Affordable Care Act.
While most authors generally accept the definition of economic credentialing as outlined by the American Medical Association, Locke Nagele (2003) disagrees. Unlike other authors Nagele believes that there are virtually no instances in which economic criteria that are considered are completely unrelated to quality concerns when viewed as a whole. She sees the main difference between traditional a...

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...importance of controlling utilization of services, quality and cost. The authors anticipate that these changes in the healthcare environment will make identifying and obtaining an optimal mix of physician members crucial for the financial success of an ACO and that it will be achieved by the means of economic credentialing. They point out that these measures that combine pure economic criteria with quality of care considerations are in alignment with policies of the Joint Commission on Ongoing Professional Practice Evaluation that require for example utilization reviews of the physicians. Wright and Drutchas don’t rule out physician support of these policies, if they are applied fairly. After all, the incomes of the ACO and all its members will hinge on the physicians and overutilization by several members could result in significant losses for all involved parties.

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