A hospital joint venture is a partnership between a physician or group of physicians and a larger medical facility, which can provide access to equipment, services, and facilities. It benefits both parties by attracting patients seeking multiple care options and increasing marketing power. Clear communication and filling an existing medical need are important for success.
A hospital joint venture is usually a business partnership between an individual physician or group of physicians and a larger medical facility. It could also be a relationship between a tax-exempt hospital and a for-profit facility. In a typical arrangement, the professional or group uses hospital facilities to conduct business while maintaining independent status. Often, a hospital organizes multiple joint ventures with physicians in order to create a thriving facility with multiple patient care options.
There are several benefits for physicians participating in a hospital joint venture. This type of arrangement can give practitioners access to equipment, services and facilities that would otherwise be too expensive for an individual practitioner. Partnering with a larger organization can also give physicians greater visibility and access to more patients through general publicity efforts. Being based in a larger facility can also provide physicians with better access to other professionals whose services may be useful as supplemental or alternative care.
A medical facility can also benefit from partnering with a physician or group in a hospital joint venture. With a sufficient number of partnerships, a hospital can attract patients seeking multiple care options. They may also be drawn to the convenience of having comprehensive services available in one location.
To create a successful hospital joint venture, there are several things that are typically considered. In addition to credentials and solid experience and skills in medical practice, a potential medical partner must be able to fill an existing medical need in the community. Market research can help determine which populations are most in need of services and the type of care they generally require. It is also important that both sides of the partnership communicate clearly and understand what each is expected to contribute to the venture.
Often, a for-profit institution enters into a hospital joint venture with a tax-exempt institution to save money or increase the number of physicians available. Combining facilities and their resources can also increase your marketing power, medical offerings, and community reach more efficiently and effectively than single entities. Known as full hospital ventures, these partnerships can also increase the competitive advantage and market share of all parties involved. For a tax-exempt hospital, a joint venture can be a way to maintain some financial, strategic and administrative control, increasing the availability of medical resources and available capital.
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