Provider-sponsored HMOs: make, buy, or joint venture?
Clay, S.B.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 51(3): 46-48
1997
ISSN/ISBN: 0735-0732 PMID: 10165438 Document Number: 476037
Providers can sponsor their own HMOs in one of three ways: by creating their own HMO, by joint venturing with an existing HMO, or by purchasing an existing HMO. When selecting the best option, providers must consider various market conditions. Managed care penetration in the area, potential competitive responses of existing HMOs, market demand, provider reputation, and provider marketing ability will all influence the feasibility of each option. Providers also must examine their own organizational identity, their ability to raise the necessary capital to start an HMO, their managed care expertise and risk contracting experience, and their information systems capabilities.