Simply remaining single hospital based is a disaster waiting to happen, failure on the installment plan: a hospital has tremendous leverage in its negotiations with a single-facility medical group because it knows that without its contract your group no longer has any reason to exist.
If it loses one contact, its only contract, your group has lost its business life.
Groups must counter that leverage by developing a true business structure that involves contracting with multiple facilities, mimicking the strategy of the larger competitors, but with a few very important differences, including the fact that management is actually “on the ground,” and the fact that ownership is local and physician-driven.
