Joint Venture Advantage

Joint Venture Model Comparison

As you consider a joint venture relationship, the answers to certain key questions will take you beyond how joint ventures are described to how they actually operate. Review the questions and answers that follow for a better understanding of how other joint venture models compare to key elements of the LHP model.

1. What experience does the company have engaging in joint venture transactions?

LHP Hospital Group, Inc.

LHP management team involved in 70% of all joint venture transactions in the last 20 years.

Hospital Company X

It is not our preferred strategy, but we have done them in the past.

Hospital Company Y

This would be our first.
2. Is the company committed to a joint venture model having shared governance that does not contemplate the company's retaining any reserved powers?

LHP Hospital Group, Inc.

Joint venture partnerships with shared governance are the only ones in which we engage.

Hospital Company X

We prefer acquisitions but under some circumstances will enter a joint venture.

Hospital Company Y

We would only do a joint venture if the target facility required it.
3. Is the company willing to share governance 50/50 with its hospital partner?

LHP Hospital Group, Inc.

Yes, this is fundamental to our culture of collaboration.

Hospital Company X

This is not part of our model.

Hospital Company Y

No.
4. Will the company agree to retain no reserved powers over operating and capital budgets or the hiring and firing of the CEO?

LHP Hospital Group, Inc.

Yes, this is an important part of our model.

Hospital Company X

No, we retain certain reserved powers.

Hospital Company Y

No, not if we are a majority owner.
5. Will the company work with your hospital's existing management?

LHP Hospital Group, Inc.

Yes.

Hospital Company X

Yes.

Hospital Company Y

Sometimes.
6. Is the joint venture board in the company's model a true fiduciary board?

LHP Hospital Group, Inc.

Yes, this is fundamental to our culture of shared governance.

Hospital Company X

Yes, as long as we can get the necessary reserved powers to protect our interests.

Hospital Company Y

No, our model establishes an advisory board only.
7. Does the company have experience relating to a shared board made up of company, physician and community partners?

LHP Hospital Group, Inc.

Yes, we have extensive experience reporting to these stakeholders.

Hospital Company X

We have some limited experience.

Hospital Company Y

No.