To Create, with Physicians, the best value in medical care for our communities. History of PhyCor, Inc. The company manages 40 medical groups with more than 2, doctors in 21 states and nearly 26, physicians through networks in 29 healthcare markets.
To Create, with Physicians, the best value in medical care for our communities. Initial public offering is completed. Company acquires 13 medical practice groups.
Company begins divestment of several clinics. Mounting difficulties result in change in leadership.
The company manages 40 medical groups with more than 2, doctors in 21 states and nearly 26, physicians through networks in 29 healthcare markets.
The advent of managed healthcare plans, such as Health Maintenance Organizations HMOsled individual physicians and group practitioners to seek outside help in handling complex new issues.
In addition to providing physicians with administrative services to meet new demands of financial management, such partnerships reduced physicians' financial risk in working with managed care programs that used a 'capitated' or fixed-rate reimbursement structure.
A large group of physicians or a large company absorbed the risks more easily than an individual doctor or small medical group and also benefited from the greater clout in negotiating managed care contracts.
While multispecialty medical clinics benefited from referrals within the group, physicians also wanted the security of managed care contracts, which provided a stable income as healthcare profits decreased. From the beginning PhyCor's strategy for helping physicians address changes in the healthcare system involved the acquisition of small to medium-sized clinics that offered primary care and medical specialties.
When PhyCor acquired a practice, the company purchased assets in the form of equipment, accounts receivable, and, sometimes, real estate. Under a year contract PhyCor then managed the clinic for approximately 15 percent of revenues from physician fees--after expenses and before physician salaries--and reimbursement of clinic expenses.
Some contracts also involved a percentage of profits or interest on capital investment for PhyCor. Doctors received cash, stock, or both, but remained independent and did not become employees of PhyCor. PhyCor left medical decisions to individual doctors, while each clinic's board of directors, consisting of three physicians and three PhyCor administrators, made general decisions, such as the purchase of new equipment.
The company's first acquisitions were located in the South and involved 20 to doctors each. PhyCor sought clinics with the most potential for growth and improvement. After five years of management under PhyCor, the Nalle Clinic reported dramatic changes to its previously unprofitable operations.
Revenues rose 30 percent the first year and five percent to ten percent each year afterward. The clinic grew to doctors and 34, capitated patients.
Some of that growth occurred through the acquisition of 19 family practice physicians, which increased the clinic's primary care doctors to 50 percent of the total. PhyCor also saved the clinic 40 percent on its malpractice insurance premiums. In addition to lower operating expenses and increased revenues, one of the attractions for physicians in selling their practices to PPMs involved the infusion of capital for equipment and facilities.
In the Greeley Medical Clinic in Colorado approached PhyCor to acquire and manage the clinic's business operations.Business Models, Business Strategy and Innovation David J.
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Business Models. Phycor files Chapter 11, Dent resigns. The plan is subject to approval by certain company creditors and the court. Jones positioned PhyCor’s IPA business a base to restructure the.
likely that PhyCor would encounter serious problems in integrating those acquisitions; (n) PhyCor did not have a business plan by which it would integrate its acquired operations into its business in a way to achieve economies of scale or generate they type of accurate information on a timely basis that PhyCor management needed in order to.
PhyCor, Inc. and its subsidiaries provide administrative management services to physician networks and medical groups. The company manages 40 medical groups with more than 2, doctors in 21 states and nearly 26, physicians through networks in 29 healthcare markets.
'CareWise, Inc., Provides a Winning Combination for Medicaid Members of Great Lakes Health Plan and CarePlus Health Plan,' Business Wire, July 31, , p. 'CEO Interview-Joseph Hutts, Chairman & CEO, Discusses the Outlook for PhyCor, Inc.,' Wall Street Digest, February 17, PhyCoR CPI initiatives: The strategic frame- work guiding PhyCor's CPI initiatives is built around a physician-driven, patient-centered model.
Physician/ administrator leadership teams develop and implement a clinical and financial strategic plan for performance .