Going global puts everyone on same incentive page.
Payment schemes vary widely among hospitals and physicians, and one of the key goals of a PHO is to make payments equitable. One method of doing this is bundling services under a global pricing structure, which helps align incentives for both sets of providers. The result often is greater medical and financial efficiencies.
D003363:Cost Control; D003365:Costs and Cost Analysis; D005376:Financial Management / Q000458:organization & administration; D006759:Hospital-Physician Joint Ventures / Q000191:economics* / Q000458:organization & administration / Q000592:standards; D009937:Organizational Objectives; D010816:Physician Incentive Plans; D011785:Quality Assurance, Health Care; D012052:Reimbursement, Incentive; D014481:United States