The History of HospitalMD
Our history is rooted in our commitment to increase revenue through market share in Community hospitalsOur history is rooted in our commitment to increase revenue through market share in Community hospitals in order to relieve their financial distress. Although we are now one of the leading providers of Emergency Medicine (EM), Hospital Medicine (HM) and rural Hybrid Medicine for Community hospitals, our origins began with our revolutionary rural Hybrid model. Our approach to integrating the business of medicine with clinical expertise was the driving force and foundation of our Hybrid model and has led to continued success with our growth into traditional standalone EM and HM services. In the late 1990s, the consensus of industry opinion was that declining reimbursement “rates” and the large number of uninsured were the fundamental causes of financial distress among rural hospitals. This made no sense to our founder. Rural hospitals are generally paid at approximately the same rates for the same services. Further, we found that among rural hospitals with service areas of similar population, demographics, and payer mixes; some made profits of $1 million, and some lost $1 million, year after year. There had to be a better explanation.
We created a new model that solved the two causes for outmigration without the financial limitations of adding two separate services.Our founder formed HospitalMD in 2004 to design and test solutions for rectifying the two causes of outmigration. These solutions required modifications to the traditional EM service and the addition of a HM service. These traditional practice models were much too costly. We created a new model that solved the two causes for outmigration without the financial limitations of adding two separate services. We called it a “Hybrid” model because it integrated the two traditional patient care models of EM and HM into a single practice with an entirely new structure. In this model, the physician provides both services during the same 24 hour period. Over the first six months, implementation of this model achieved a 66% increase in net revenue with a return on investment of over 400%. The hospital was profitable for the first time in 10 years. We realized then that our Hybrid model could revolutionize rural hospital’s healthcare, allowing them to not only survive, but to thrive financially. As we continued to grow over the years, we soon came to learn that the same principles that we employed to make our Hybrid model successful in rural hospitals was not unique. Many Community hospitals across the country where the stand alone practice model was feasible were desperately in need of those same principles. The same dedication and innovative approach HospitalMD started our Hybrid model with was used to design stand-alone EM and HM services to Community hospitals. Since our inception in 2004, the value to our clients of our practice models has improved significantly. In addition to maximizing revenue through capturing patient outmigration, we maximize revenue through the internal mastery of other complementary skill sets including physician recruiting and development, case management, improved medical decision making and clinical documentation, appropriate patient classification, stronger physician direction of patient care, continuity of care, and patient satisfaction. Community hospitals continue to need EM, HM and Hybrid medicine partners that can not only understand the clinical components of a successful hospital, but the financial components as well. HospitalMD integrates the business of medicine with clinical expertise, making us the preferred choice of Community hospitals!
The level of commitment and expertise HospitalMD has brought to our Emergency Department has significantly impacted our hospital and patients for the better!Hospital Executive
After several months of service with HospitalMD and their physicians, we experienced a tremendous amount of positive feedback from our patients of how compassionate the physicians were and how well they communicated. We couldn’t be happier with HospitalMD!Hospital Executive
We are very pleased with the updates and continuing education that HospitalMD provides both to the ED physicians as well as our coding staff and quality/risk management departments. This plays a vital role in our day-to-day operations while assisting our hospital in keeping compliant with the latest legal changes.Hospital Executive