New Models for Community Hospital Joint Ventures

Joint ventures between investor-owned and nonprofit health care organizations are not new; in fact, they have occurred for at least 25 years. Until recently, nonprofits were employing this type of transaction to address their need for capital without 'selling out' and losing control over a vital community asset. The joint venture structure provided nonprofits with an influx of capital while allowing them to retain both a governance role and an economic interest.

In the past few years, however, two new growth-oriented models have appeared--joint venturing a referral network and using an academic brand. In these models, the nonprofit partner is involved more as a buyer-partner than a seller.