3. Are the operations of the APM feasible—both for the practice and for others?
Kim Sweet, CHSPA, CHP, healthcare resource administrator for healthcare consultancy ScrogginsGrear, says practices need to determine the ease or difficulty when building the system, processes and infrastructure that make the APM operational. One example Sweet cites is the possibility of having to add staff such as diabetes educators or nutritionists. This would be staff practices would not normally hire without cost justifications, but could be necessary to participate in the APM. There could also be the cost and time to add new technology for the administrative side of the practice. This doesn’t generate immediate revenue and could be a pretty large initial expense. Practices should also inquire what support the APM will provide to help the practice through the process of implementation.
4. Will APM participation affect profits?
Knowing this—and whether the practice can sustain the model either way—is essential, says Zetter. “Practices need to know what additional costs can be absorbed or made up to ensure its bottom line doesn’t suffer,” he says. It’s also important to know how revenue changes will affect each owner’s stake in profits.
He advises determining all reasons for and effects of implementing or participating in an APM, including any additional costs. Practices can determine costs and possible revenue effects to build out a business plan to determine to the possible impact on their profits.