Question

You’re a physician in a practice group that became involved with PhyCor, Inc. Your group eliminated its entire management structure when PhyCor took over. Now, with PhyCor collapsing, you are being offered repurchase of your assets from PhyCor. What strategic planning steps do you propose to your group for going forward and selecting among options such as dissolving the group, purchasing the assets and finding another management firm, purchasing the assets and establishing in-house management, or other alternatives?

Answer 1

When devicing the strategy plan for any organisation, the company has to follow a few steps that would lead to the successful implementation of this plan.

The question above talks about the strategy plan of a Medical Practice group which was first associated with another company called the PhyCor, Inc. the management part of the practice group was handled by PhyCor, Inc.

A medical practise should not always be seen as a profit making organisation as the well being of the patient will be at priority and when the management is outsourced by a third party which may or may not identify with the goals and missions of the medical practice, the management seldom succeeds.

For the Strategy Planning of such an organisation, the first and foremost step would be to identify the mission and vision of the organisation or lack thereof. If there is no vision that needs to be brought into life, then the best possible way around such a situation was be to dissolve the group.

Secondly, If the vision and mission of the organisation is set, the next thing to be decided is if the management should be in-house or out-sourced as was done earlier. Unfortunately the problem with outsourcing is that, The fate of the collaborating organisation wouldn't be in out hands. and eventually, if the organisation had to fail, It would take the practice group along with it as a collateral.

In-house management would bring in the requirement of more funding, which may not be as suitable. The investors may not seem interested in putting in more money into an already sinking ship. If the medical practice group could arrange for more funding through investors or bank loan, this would be the best possible way to go around the scenario as nobody understands the organisation as much as the people who work for it.

The other alternative would be to partner up with someone in exchange for equal equity which would make the new comer feel like he's a part of the organisation and that the profit/loss of it would be his own as well.