Strategic Regional Organizations (SROs)
A growing number of organizations are opting to become part of Strategic Regional Organizations (“SROs”) a term defined by TRG.
SROs are growing in popularity and will significantly alter the framework in which organizations compete. The size and geography they represent is changing the way we think about competition and the nature of the choices provider organizations now face.
TRG is an industry leader in building this concept and these organizations. Our consultants have extensive experience building the structures as well as working with existing SROs to help those organizations realize their full potential.
TRG works with providers in a broad geography to develop a network for hospitals and health systems with contiguous markets who are not substantial competitors.
The rise in SROs and the size and geography they represent is changing the way we think about competition and the nature of the choices provider organizations now face.
Market and economic factors demand hospitals and health systems and their associated physicians align with others to create a large enough platform to operate under population health and achieve economic benefits. A growing number are opting to become part of Strategic Regional Organizations (“SROs”), a term coined by TRG Healthcare to describe the variety of provider and provider/payer networks in healthcare today.
SROs Should Meet the Following Criteria:
STRATEGIC: Initiatives by a single organization or two or more significant healthcare organizations looking to achieve economies of scale at least equal to their competitors and build the infrastructure and capabilities necessary to take part in population health initiatives.
REGIONAL: Comprised of healthcare organization(s) situated across broad, contiguous geographies, including many that are embracing the unique historical opportunity that exists today to organize geographies and populations to redefine the markets in which they compete.
ORGANIZATION: Formal structures which can take many different forms depending on the goals of the party or parties involved. These structures do not need to compromise the parties’ overall independence but do require some form of interdependence.