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PubMed1985

How antitrust laws are changing the health care industry.

The new competitive environment and the recent application of antitrust laws to the health care industry are changing the way in which hospitals do business. This article explores the applicability of antitrust laws to health care, common practices which may be considered in violation of those laws, and offers a solution to the problem in the form of an antitrust compliance monitoring program.

Economic Competition↗
PubMed1985

Joint venturing communications skills.

As the number of joint ventures in the health care industry increases, it is becoming necessary to establish guidelines for effectively promoting the new entity. Discussed here are several examples of joint communications efforts that successfully introduced new products and ten tips to help make this process work.

Communication↗
PubMed1985

The changing landscape of health care.

The traditional health care landscape, hospitals and private physicians' offices, is undergoing a major shift of focus. "Womb to tomb" care facilities, typified by boutique developments, medical malls, and health parks, are just now in their infancy. This article provides an overview of the likely direction of health care design as shaped by consumer demand.

Ambulatory Care Facilities↗
PubMedDate not supplied

Declining average daily census. Part 2: Possible solutions.

Several possible solutions are available to hospitals experiencing a declining average daily census, including: Closure of some U.S. hospitals; Joint ventures between physicians and hospitals; Development of integrated and coordinated medical-fiscal-management information systems; Improvements in the hospital's short-term marketing strategy; Reduction of the facility's internal operation expenses; Vertical more than horizontal diversification to develop a multilevel (acute through home care) regional health care system with an alternative health care payment system that is a joint venture with the medical staff(s); Acquisition or management by a not-for-profit or investor-owned multihospital system (emphasis on horizontal versus vertical integration). Many reasons exist for an institution to choose the solution of developing a regional multilevel health care system rather than being part of a large, geographically scattered, multihospital system. Geographic proximity, lenders' preferences, service integration, management recruitment, and local remedies to a declining census all favor the regional system. More answers lie in emphasizing the basics of health care regionalization and focusing on vertical integration, including a prepayment plan, rather than stressing large multihospital systems with institutions in several states or selling out to the investor-owned groups.

Bed Occupancy↗
PubMed1986

Hospital revenue diversification: a case study in joint venture investing.

In the last two and one-half years a suburban community hospital, through its parent corporation, invested $8 million in four new companies in an effort to diversify its revenue base. The important lessons learned during the process--including the need for a dedicated diversification team, commitment of funds equal to 150 percent of those required, and allocation of sufficient funds for marketing--can help healthcare organizations contemplating a similar revenue diversification effort.

California↗
PubMed1988

Hospitals face loss of federal tax-exempt status.

Because of governmental challenges, not-for-profit hospitals can no longer take for granted their right to be tax exempt. The Internal Revenue Service is auditing nearly 1,500 tax-exempt healthcare organizations to determine how accurately they are reporting unrelated business income. At greatest risk are those hospital systems that have become overly acquisitive or have strayed from the charitable mission that originally entitled them to tax exemption. To protect their tax-exempt status, currently exempt healthcare institutions must be careful that any activities, such as joint ventures and affiliate corporations, conform to their charitable mission. In the face of tougher legislation and Federal scrutiny, hospitals must make sure they are devoted to and performing a charitable purpose if they want to keep their tax-exempt status.

Charities↗