Physician Services Agreement (PSA) is alternative employment model relationship between hospitals and physician groups. Unlike an employment model where the hospital enters into an employment relationship, in the PSA the physicians continue to operate under their own corporate structure, but contract with the hospital to provide medical services to their patients.
The benefit of the PSA is that the physicians maintain some autonomy as it relates to their income distribution model and benefit structure. Also, there is arguably an easier unwind should the relationship with the hospital fail.
In either the employment model or the PSA the hospital typically purchases the physicians’ assets.
We have had success in negotiating employment and PSA relationships both for hospitals and physicians.