Convinced that the deal offers something that benefits everybody, officials at Cincinnati's Deaconess Hospital are transforming the hospital from a traditional acute-care facility to a joint venture with doctors. Going forward, doctors will own 40 percent of the hospital, and its parent organization will own 60 percent.
The deal will make Deaconess the only acute-care hospital in the state that is structured as a joint venture. Senior officials hope that the deal will develop the hospital's referral base. And it needs the help, particularly given that it's losing money--it reported 2007 revenue of $59.3 million and expenses of $69.8 million.
Once the joint venture deal is consummated, the 273-bed facility will probably be the Doctors' Hospital at Deaconess. Officials with Deaconess believe that the new structure will appeal to doctors who are sick of competing with health systems staffed by employed primary-care physicians. The new structure will also give physicians who want to do so the chance to take on management roles.
To learn more about the joint venture:
- read this Business Courier of Cincinnati article