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.
Divestiture eliminates the opportunity to use their formal relationships for strategic purposes.
Physician Relationships Physician relationships under management improvement initiatives will always be strained because of the lack of alignment and conflicts in perceived effectiveness of the performance of management. Transformation represents the greatest opportunity to improve physician relationships and to attract other physicians to the transformed organization. It specifically sets out to retain the best physicians. Privatization fundamentally changes the relationship with the physicians, positioning them as potential competitors. At the very least their interests are not directly aligned with the parent organization.