Joint ventures. A guide to developing and operating an ambulatory care center.
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Mounting capitalization obstacles and growing competition require hospitals to explore nontraditional avenues in acquiring and offering services. This first of a two-article series outlines the reasons behind the increasing popularity of hospital-physician joint venture agreements for diagnostic imaging equipment, and the contributions radiology administrators should make in the formation of such enterprises.
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The development of centralized materials management systems in more and more hospitals has resulted in increased operating efficiencies. Hospital administrators have thus been prompted to market these materials management services to outside businesses on a contract basis. The trend is toward the creation of a free-standing supply subsidiary, as a separate, for-profit corporation from the hospital. The following hypothetical case concerns a fictitious hospital which is entering the for-profit supply business. The case sets forth the business plans of the hospital and the legal questions of the materials manager who will run the supply business.
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