NOTES ON RECENT DEVELOPMENTS IN HOSPITAL PHYSICIAN JOINT VENTURES
October 31, 2007

INTRODUCTION

Health care policy is contentious and ever-changing. There is constant debate over such key issues as resource allocation, the respective roles of the public and private sector, ethical restrictions, and the proper approaches to controlling cost, promoting quality and expanding availability. Health care providers, suppliers, consumers and payors face great uncertainty, with myriad decisions being made by a confusing array of administrative and legislative bodies.

Implementation of a hospital-physician joint venture is very much susceptible to these

 

varied and sometimes warring influences. This article consists of some notes as to recent developments in how hospital-physician joint ventures are attempting to deal with these, and other, issues.

One Size Does Not Fit All/Competition

Each client must determine what structure is best for it. There is no cookie-cutter approach especially since the personalities of the physicians, administrators, and investors involved in each case will playa large role in what will work or not. Also a client always has to look at whether someone else has a competing venture of the type being contemplated. If so the client needs to ask how it can meet or outperform the competition before going forward with the joint venture.