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(Circulation. 1997;95:740-744.)
© 1997 American Heart Association, Inc.

Articles

Academic Cardiology Division in the Era of Managed Care

A Paradigm for Survival

Arthur M. Feldman, MD, PhD; Pamela K. Greenhouse, MBA; Steven E. Reis, MD; Mark S. Sevco, MBA, MHA

the Division of Cardiology, Department of Medicine, University of Pittsburgh (Pa) Medical Center.

Correspondence to Arthur M. Feldman, MD, PhD, Division of Cardiology, University of Pittsburgh Medical Center, Presbyterian University Hospital, 200 Lothrop St, S572 Scaife Hall, Pittsburgh, PA 15213. E-mail feldma@card2.cath.upmc.edu.

Abstract The ability of academic divisions of cardiology to pursue educational and research missions in an era of market-driven managed care is being increasingly jeopardized. Indeed, several academic medical centers have been sold to for-profit entities, and many cardiology divisions have been forced to decrease staff and faculty reimbursements. Despite these threats, the academic division has unique strengths: (1) premium quality of care, (2) a single employer, (3) a somewhat uniform practice culture, (4) high-volume operators performing interventional procedures, (5) expertise in highly technical aspects of cardiology, and (6) the availability of physicians for outreach ventures. Therefore, we hypothesized that the cardiology division could be strengthened by collaborating with the medical center in the development of an aggressive and proactive managed care strategy. To this end, we developed a cardiovascular network having the academic center as its central focus but including a group of high-quality and geographically dispersed community-based physicians. These physicians were attracted by an economic package that provided protection from downside risk, participation in our managed care initiatives, and geographic exclusivity in an overcrowded market. In turn, the community-based physicians increasingly used the academic medical center for tertiary care, resulting in increased volumes and incremental profitability. Using this paradigm, we have now recruited 40 community cardiologists. The resulting network provides access to a university cardiologist in most of the surrounding urban and rural counties and will allow us to compete effectively for capitated contracts.

Key Words: managed care • cardiology, academic

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