Earlier this year, I read a news piece on a health system in Memphis called Methodist Le Bonheur Healthcare that had announced that it would be closing the joint venture ASC that it operates in concert with over one hundred physician partners.
It’s easy to be a backseat driver, but in the context of case flight from hospitals to outpatient facilities, buying large hospitals from national chains “because we can run them better” is a bit risky.
No matter how good it looks, no matter how profitable it is, you can’t be dependent upon any customer for a significant part of your business.
Creative destruction is taking aim directly at community hospitals. You can fight to save them. But if they’ve failed, you can, á la Shumpeter (and Weiss), take part in creating, phoenix-like, far more appropriate healthcare solutions for your community and for your profit.