Physician integration is back--and more important than ever.

Current affiliation strategies tend to focus on joint ventures and employment. Careful planning and organizing of a joint venture can mitigate their associated legal, tax, regulatory, and cultural risks. The success of an employment model depends upon a compensation structure that aligns the incentives of physicians and the hospital. Fora successful affiliation program, hospitals should determine needs and trends, implement strategic planning, and conduct due diligence.