Physician practice management companies: a failed concept.
Is there a lesson? Famed investor Warren Buffet claims he never buys a company unless he personally understands the business. He admits he has missed a few real opportunities in the high technology sector. However, he is pleased to have avoided many disasters. Many physicians entered into PPMC deals without completely understanding the concept. Perhaps the lesson is to simply avoid a deal that does not make sense. Understand the market. Understand the business. If you, as a buyer, seller or partner cannot clearly understand how a transaction creates value that you can capture, walk away.
Kraft
Stephen
S
Washington University Olin School of Business, USA. krafts@olin.wustl.edu
D016361:Bankruptcy; D003284:Contract Services / Q000191:economics; D003362:Cost-Benefit Analysis; D004470:Economics, Medical; D017598:Efficiency, Organizational; D006123:Group Practice / Q000191:economics*; D019981:Health Care Sector; D007357:Insurance, Physician Services / Q000191:economics; D008329:Managed Care Programs / Q000191:economics; D008511:Medicine / Q000458:organization & administration*; D017008:Negotiating; D020399:Practice Management / Q000191:economics*; D011216:Practice Management, Medical / Q000191:economics / Q000458:organization & administration*; D013038:Specialization; D014481:United States