Integrated delivery can ally physician and hospital plans.

Hospitals trying for successful business cooperation with physicians have become frustrated with risky joint ventures, quick-fix recruiting plans, and management service organizations. An integrated delivery system (IDS), however, may succeed where other approaches have failed. An IDS can align physician and hospital strategic planning, command more favorable contract terms from payers, and meet community needs in recruiting physicians and allocating capital. With the healthcare payment system likely to remain chaotic, however, the value of IDS improvements to healthcare delivery remains to be seen.