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Issue Date: October 15, 1998


Financial Problems Show PPMCs at a Crossroads
Following four years of exceptional growth, many physician practice management companies are struggling financially because of lack of investor confidence, falling stock prices, new federal regulations, and physician complaints about the way PPMCs do business.

“The PPMC industry is at a crossroads,” says Michael Blau, an attorney who is


Confusion Expected in the Medicare Program
If you treat Medicare patients, you might expect your patients to be confused by changes in the program. The federal Health Care Financing Administration (HCFA), which runs the federal program for the elderly, has produced the Medicare Handbook: Balanced Budget Act of 1997. HCFA has been test marketing the handbook


New Forms of PHOs, MSOs Taking Shape
As a result of significant monetary losses from contracts negotiated between hospitals and physicians over the last five to seven years, many physician-hospital organizations (PHOs) and hospital-owned management service organizations (MSOs) are having financial and legal difficulties today. As a result, many physicians are thinking twice about the


Physician Group Succeeds After Three Generations of Organizational Change
Next to patient care, forming an alliance with provider organizations is of greatest concern to physicians nationwide. Typically, physicians align themselves with hospitals. And while this fit may seem natural because physicians and hospitals have long needed each other as business partners, both sides have complained of problems when physicians


Consultant Says Physician Leaders Need to Be Strong and Visionary Entrepreneurs
Q:Mr. Gorey, for this interview, I would like to focus our discussion on organizational options for doctors. But before we do that, let’s begin by discussing your background and how you became an authority on this subject.

A:My background in health care began at the American


New Regulations Address Medicare Part C
The Health Care Financing Administration (HCFA) has released a comprehensive set of regulations implementing the new Part C of the Medicare program, known as the Medicare+Choice (M+C) program. Established under the Balanced Budget Act of 1997, the new program greatly expands the health care options available to Medicare


PPMC Partnering Considerations
Deciding whether to affiliate with a partner and choosing that partner can be long and arduous processes for a physician group. After making these decisions, the group faces another crucial task: It must work through the final terms and structure of the deal. This process can be lengthy as well,




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