Transformation supports a high level of retention of patient care activity within the system. It also provides the opportunity to attract new physicians to the transformed structure. It erodes direct revenue of the system, however, by the transfer of ancillary revenues. Privatization unavoidably creates a new competitor to the parent system even with strategic alignment between the PPM and the health system. It reduces the ancillary revenues controlled by the system.
Divestiture has the most damaging effects with respect to market share and revenue retention.
It is likely that the best physicians who are divested will align themselves with a competitor organization, at least in competitive markets. Strategy The initiatives through management improvement preserve existing strategies. Transformation more effectively aligns the interest of physicians with the health system. It is likely, however, to cause a certain degree of loss to strategic control. Transformation is likely to foster competitors and a direct loss of market share.