Joint ventures. Nine pitfalls for the unwary.
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HCSM's interview this month is with Eugene E. Loubier, FACHA, President of Franklin Medical Center, Greenfield, Massachusetts. This 162-bed facility is the first to start formally a MeSH plan, a unique medical staff/hospital joint venture or partnership. Through MeSH, the hospital and its medical staff have created a new corporation, equally owned by the hospital and the medical staff members participating in the MeSH. This corporation is responsible for areas where the economic interests of the physicians and the hospitals overlap. Instead of each party independently pursuing economic opportunities that might impact the other party, the MeSH can, as a whole, undertake the venture.
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Hospitals and individuals who form lasting symbiotic relationships that leave both parties intact as viable adversaries will outperform both their non-cooperative and their non-competitive rivals.
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Hospital-physician partnering, a proposition perpetually loaded with opportunities and dangers, remains one of the key strategies for hospital-based organizations pursuing network- and integrated system-oriented strategies. Developing and pursuing well-thought-out models for partnerships with specialists is key to a successful outcome.
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