Reference no: EM133292339

Question: Our national healthcare system serves millions of people on a daily basis. Joint ventures can come up when independent physician practices are involved in strategy planning or succession planning. The capacity to consult with other partners when making company decisions is one advantage. Entering adjacent industries where entry was previously difficult and gaining access to knowledge without having to add staff. Taking turns shouldering the cost of capitalizing the company as well as costs and risks may be shared by the parties. The use of technology that the other business already has and making a name for oneself in fresh, untouched markets. Some cons can include either party making poor tactical choices, which could have an impact on the project's intended outcome. These are frequently brought on by a misinterpretation of each organization's functions. Setting unrealistic goals that may not be fully understood in advance and are not in line with a common objective (Hernandez, 2019).

Hospitals are a financial business just like any other business. They want to make money too. Hospitals can get pros and cons of a joint venture. Some pros would include gaining access to expertise without the need to hire more staff. Sharing the financial responsibility of capitalizing the business. Both parties can share risks and costs (Hernandez, 2020). I think some of the cons would be to force patients to seek medical treatment in a facility rather than just making an appointment to see their personal physician.

I think that both parties can combine forces and come together to form a great partnership. I think by joining forces, they would share expenses and patients can utilize some of the best care the healthcare system can offer. But I also see some drawbacks to this concept. What about patients that live in rural areas and can not get to a medical facility for better physician care? This would take away access to patients in rural areas and these patients wouldn't follow up with treatments if they do not have easy access. So I do see both sides of the coin on this topic.

Nick Hernandez, M. B. A. (2019, January 10). What medical practices should know about joint ventures. The Doctor Weighs In.

Nick Hernandez, M. B. A. (2020, November 16). Pros and cons of Medical Practice Joint Ventures. Physicians Practice.