Frequently Asked Questions

Q. What makes LHP's joint venture model stand alone in the industry?

A. The primary distinguishing feature of LHP's joint venture model is the unusual relationship between ownership and governance. Unlike most joint ventures where a partner's ownership percentage determines the level of participation in governance, the LHP model allows the not-for-profit partner to retain 50% governance control with an ownership percentage as low as 20%. It is a testament to LHP's collaborative culture that it is willing to structure governance involvement in this manner.

Q: Why is culture so important in the LHP model?

A: "Culture" embodies how we carry out our business. It is respect, collaboration and dedication. It means having available what hospital partners need to reach their goals—capital resources, people resources, industry experts and customized solutions.

Q: Why should I care about the scale of a joint venture partner?

A. Bigger isn't always better. We believe that optimum scale is achieved when the depth and breadth of operational resources are sufficient to address each hospital's needs—but not so big that hospitals feel they must compete for attention, resources or capital.

Q. What is LHP's long-term plan for growth?

A. By choice, our joint venture model is built solely on joint venture transactions. Moreover, we enter into only those joint venture arrangements that are a good fit for our hospital partners—and our company. This is an important business decision because all LHP assets are invested in shared governance joint ventures. LHP was created to be and is committed to being a joint venture partner for the long term.

Q. Don't all propriety hospital systems have access to capital?

For the most part, yes, but to varying levels of commitment and with varying objectives. Some companies provide capital with the objective of receiving immediate returns. LHP provides access to capital as an investment in establishing the programs and services necessary to care for current patients, to attract new patients, and to create new opportunities for hospital growth over the lifetime of the partnership.

Q. How does the community benefit from an LHP joint venture partnership?

Communities benefit from LHP's involvement on many levels. Primary among the benefits is that the hospital retains its mission and identity, while gaining the resources needed for a healthy future. This happens in great part because local leaders are part of the LHP collaborative process involved in planning, decision-making and guiding the future of local healthcare. Among the other community positives that can accompany an LHP joint venture are the economic impact from new jobs, an enhanced tax base, and an increased ability to attract new businesses and industry. Perhaps most important is the opportunity to offer new services and increase wellness within communities.