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Issue Date: April 1996


Five Lessons for Physicians Seeking Capital
One of the most obvious sources of capital for physicians is physician practice management companies (PPMs). But doctors today also are getting capital from many other sources, including banks, venture capitalists, large equity investors, financial corporations, management service organizations, other physicians, hospitals, insurers, and joint-venture partners. Each source has


Announcing a Toll-Free Line for Physicians
Our mission at Physicians Practice Options is to be a practical information resource to help physicians succeed in a rapidly changing health care environment. Since we published our first issue in February, physicians nationwide have contacted us and expressed a need for business strategy information. In the past two months,


Managed Care Food Chain And How You Can Move Up
The world’s oceans are teeming with large fish that thrive on smaller fish. That’s the food chain in action. Doctors today are finding that trying to survive in a world dominated by managed care is like trying to swim with sharks. What’s more, doctors find that they


How Doctors Can Thrive Under Managed Care (Part II)
Q: Is the late-blooming phenomena of physician-practice management firms an overt attempt to move up the food chain?
A: Yes, it is. And that part of the phenomena is following the venture capital. Venture capitalists focus on industries that they believe will be dominant in their category


Capitation: A Primer on Pricing Risk
Physicians considering capitation contracts sometimes use overly simple methods to calculate prices. They rely on opinions rather than facts.
When an actuary prices capitation rates, finding, using, and managing pricing data is the key. By its nature, capitation is a risky, but manageable, business. Whether you are contracting with


IPAs Drive up HMO Membership
HMOs gained 7.7 million new members in the year that ended July 1, 1995, according to a new report by InterStudy, an HMO research organization in Minneapolis. Nationwide enrollment in HMOs reached a high of 54 million individuals, InterStudy said. The 7.7 million-member increase represents the largest


Physicians’ Salaries Decline, AMA Survey Shows
For the first time since the AMA has been collecting salary data, physician income declined in 1994, the AMA said. Median income fell 3.8% from 1993 levels.
Decreases occurred in nearly every category of physician. The specialties with the greatest percentage decline in median income were pathology, anesthesiology,


Capital Deals Can Make Strange BedFellows
Many varieties of capital partners are available to physicians. Each of these sources of capital offers its own niche that varies according to its business plan and philosophy. For most physicians, evaluating the myriad potential partners can be frustrating and time consuming. But physicians should make the time necessary because




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