Hospital revenue diversification: a case study in joint venture investing
Gilbert, R.N.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 40(4): 46-52
1986
ISSN/ISBN: 0735-0732 PMID: 10275459 Document Number: 281661
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.