Joint ventures have been a part of the health care landscape for several decades, but recent market and environmental developments have made this strategy a more prevalent and viable option for solidifying more cooperative relationships between hospitals and physicians. Competition for ancillary services revenue, a regulatory environment that encourages joint ventures, physicians who are motivated to replace declining practice income, and the potential for high-margin returns from joint ventures are leading many providers to rethink how joint venture might benefit their organizations and decrease competitive initiatives that was waste community resources.

Despite conditions conducive to joint venture formation, numerous complex issues must be taken into account when considering a joint venture. Providers must consider strategic alignment with organizational goals, potential market position and return on investment, evaluation criteria for possible partners, backfill opportunities if ancillary services are lost, exit strategies, and the consequences of not structuring a joint venture. A systematic approach to structuring, implementing, and conducting ongoing evaluation of joint ventures ensures that joint ventures have the best chance for achieving the goals, objectives, and benefits targeted by the parties involved.