The Unilateral Model—A Smaller Pie

Smaller PieWhile potential partners in ASC’s, both Hospitals (historically) and Physicians (at an ever-growing rate) may opt to develop such an ASC without formally involving the other party.

This “Unilateral Model” may result in benefits to one or the other, but the “costs” involved (both financially and inter-personally) should not be overlooked or underestimated.

The “costs” involved in a unilateral approach may include:

  • Direct competition with one party benefiting at the expense of the other
  • Disruption and deterioration of  important  traditional relationships
  • Negative community perception
  • Duplication of services and costs within the community
  • Increased level of individual business risk
  • Missed opportunities to jointly provide a service in a higher-quality fashion

HVP acknowledges that there can be specific situations that make the “Unilateral Model” the only viable alternative for either the Hospital or Physicians.  On the other hand, the decision to take this approach should be done with “eyes open” since the end result may be that  the same-sized market “pie” gets sliced into smaller pieces and no one wins in the long run.

The HVP Collaborative Model — A Bigger Pie ›