Physician-controlled HMOs. The basics of forming a successful organization.

Physician-sponsored HMOs are an excellent way to preserve one's practice, control health care issues, and assure fair reimbursement as professionals and investors in your own HMO. A physician-owned and -controlled HMO is, in the ultimate sense, a marketing company for its sponsors that enables them to compete on an equal footing with physicians associated with other HMOs. The most common causes of major organizational failure are a "business-as- usual" attitude held by participating physicians; inadequate management; inadequate physician leadership; marketing failure; and poor financial performance. Examination of these issues before the plan proceeds can obviate some of the difficulties.