Joint Ventures to Pursue or Not to Pursue?
Joint Ventures to Pursue or Not to Pursue?
In this article, Blaszyk and Hill-Mischel describe the risks and benefits of joint ventures as it relates to not-for-profit healthcare facilities. The article sets forth certain criteria that should be considered in deciding whether to pursue joint venture or not.
The problem is making an informed decision on joint venture. Many factors come into play including regulatory and competitive factors. The strategic and financial risks and benefits should be, but are not always, weighed. Developing the core policies, mission, and vision for joint venture is important for success. A joint venture decision that does not take into consideration the merits of expenditure, time, and effort are faulty. Many joint ventures are undertaken without due consideration given to all factors.
The researchers not only discuss the difficulty and challenges surrounding joint venture, but also offer glance at core principle associate with the design of policy documents. Risks verses benefits are clearly laid out and a screening and approval process is borrowed from Catholic Healthcare West. Any organization attempting a joint venture without addressing the components of a joint venture administrative policy opens itself up to the possibility of failure. Lack of involvement of clinical leadership is a flaw in strategic planning. Findings from the article are directly related to lessons learned and successful joint ventures undertaken by Catholic Healthcare West.
Once again, the guidance provided within the article are from models that have been proven successful. Key elements for success include ...