ABSTRACT
Though once relatively inconsequential, in today's competitive climate a strategic buy-in/buy-out plan is critical to a medical group's success. A plan that is too costly in relation to competitor's plans can spell a death sentence for a group seeking to attract new physicians. In this case study, a group confronts its buy-in/buy-out problem and uses it as an opportunity to redefine goals and objectives and rebuild the group.
Subject(s)
Group Practice/economics , Medical Staff , Professional Corporations/economics , Professional Practice/economics , Economic CompetitionABSTRACT
A negative past experience in contracting with an HMO had soured a small fee-for-service group's taste for this type of organization. A change in management led to an objective evaluation of the situation and, as a result, a renewal of negotiations with the HMO. Outlined in this article are the planning premises, objectives, and major steps undertaken to make a prepaid plan work within a fee-for-service setting.
Subject(s)
Contract Services , Financial Management , Group Practice, Prepaid/organization & administration , Group Practice/organization & administration , Health Maintenance Organizations , MinnesotaABSTRACT
LP Medical Specialists decided to open a branch clinic in response to pronounced community need. While building a branch clinic facility was initially intended for future implementation, the community's immediate need prompted the group to establish the branch in a temporary facility. By leasing a vacated school building which was transformed into a medical clinic through the addition of demountable partitions, the group was able to expand its services and establish its image as a caring provider in the community--all while justifying expenditures that would not detract from the group's plans to build a future permanent facility.