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    Partnership Arrangement in Healthcare

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    Your organization has enjoyed recent success but a policy of the presidential administration has caused some apprehension on the part of many competing organizations. The present thought is to enter into a joint venture or some sort of partnership arrangement with other health care organizations in the community in order to improve your market position and increase profits. You have been competition. Be sure to identify the governing laws.

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    Interesting topic! Let's taker a closer look. I also attached two supporting articles, some of which this response is drawn.


    Your organization sounds like it is a for-profit health care organization, e.g. " you have been competition (competitive?)." However, you could decide to either enter into a joint venture with a non-profit or a for-profit organization to reap the benefits of such a relationship (e.g., improve market position, increase profits, etc.).

    A Joint Venture is an association of two or more persons who contractually agree to contribute to a specific venture, which is usually limited to a specific task or period of time. Joint Ventures are commonly used organizational structures for healthcare organizations (both non-profit and for-profit organizations) (http://www.firstbusiness.ca/workshops/joint.htm).

    According to Boettiger (2004, see full article attached for convenience), for example, given the current revenue and cost pressures in the healthcare industry, joint ventures are more important than ever). The Venture partners contribute certain items in the furtherance of a particular project or undertaking, such as: real property; money; labor; technology; experience and other resources. In addition, partners agree to share the Venture's expenses, and agree on the degree of control they will have in the Venture, all in return for an interest in the Venture's revenues. Although it has some similarities in structure to a partnership, there are some significant differences between the two structures that need to clearly understood by the Venture partners before choosing this structure as a vehicle to carry on business - they usually fall into the general categories of income taxation, administration ...

    Solution Summary

    Highlights entering into a joint venture or some sort of partnership arrangement with other health care organizations in the community in order to improve its market position and increase profits, including the governing laws. Supplemented with two articles on joint ventures and related laws.