Strategic alliances are good for HFMA - Healthcare Financial Management Association's alliance with Medical Group Management Association

Healthcare Financial Management, Nov, 1996 by Warren Hern

In August, HFMA formed a strategic alliance with the Medical Group Management Association (MGMA) to better serve the members of both associations. MGMA represents 6,500 group practices and 17,500 group practice managers and physician executives. The alliance is a positive step for HFMA and one that helps achieve the goals the Association has set for itself in its market diversification and penetration plan.

HFMA and MGMA agreed to collaborate in the following areas:

* The Center for Research in Ambulatory Health Care Administration (CRAHCA) Chart of Accounts project. This project will update the Chart of Accounts to better meet current group practice accounting and financial reporting needs. The revised Chart of Accounts will be the standard for accounting in the ambulatory care industry. This project will be ongoing.

* Advocacy. HFMA and MGMA will take advantage of their common and complementary strengths to undertake national advocacy programs. The two associations will provide viewpoints on governmental issues of interest to their members and will serve as resources to national policymakers.

* State/chapter services. HFMA and MGMA recognize that many of their member services and benefits are provided at the chapter level and understand the need for and effectiveness of local service delivery, particularly in the areas of networking and education. The two associations, therefore, will collaborate at state and local levels to accomplish the shared goals of improved member service, networking and educational opportunities, and growth of their human and financial resources.

* Technical exchanges. HFMA and MGMA will explore jointly developing software management tools designed to increase accounting, financial, and operational efficiencies throughout the healthcare industry. They also will work to develop financial accounting standards for the group practice setting.

The language of the agreement provides insight into the purpose and objectives of the alliance:

"The purpose of this agreement is consistent with both associations' efforts to achieve their visions and strategic directions. MGMA's vision is to be the source of excellence and innovation as the leading association in providing quality and timely services and resources for medical practice management and leadership. HFMA's vision is to be the leading professional resource for individuals seeking excellence in the financial management of health services organizations.

"MGMA and HFMA support an overall vision for the U.S. healthcare system. That vision, developed with a group of national associations, seeks a society of healthy individuals and communities. The vision calls for a consumer-responsive, prevention-focused, and affordable healthcare system aimed at improved health status and enhanced quality of life for all.

"The strategic directions for both associations involve the development of broad-scale collaborative efforts. Staff leadership of MGMA and HFMA recognize the important position each association holds in helping the other achieve its goals.

"MGMA's distinctive competence concentrates on general practice management issues, while HFMA's distinctive competence is focused on financial management issues. MGMA can gain from HFMA's broad-based expertise in health services financial issues, and HFMA can gain from MGMA's recognized leadership in the field of practice management. By working collaboratively, both organizations can gain synergies and help achieve the overall vision of improved health of communities.

"Improved member service should result from this alliance. Members from both associations can gain broader educational opportunities, increased informational sources, and more focused and effective advocacy efforts than either organization could accomplish alone."

HFMA will continue to explore opportunities to establish alliances with other organizations for all the reasons I have noted. We must seek collaboration with others in order for HFMA to help members meet their career objectives and for the Association to meet its business objectives.