Grimm Quoted on Hospital Challenges and Joint Operating Agreements
Law360
Health Care Practice Leader Douglas Grimm was quoted in a recent article discussing the rising popularity of joint operating agreements (JOAs) among health systems facing industry pressures.
Douglas said, “The healthcare marketplace right now is a pressure cooker and [there’s] no relief valve on the horizon.”
JOAs are arrangements in which two or more health systems run a combined operation. The negotiations to construct and manage a JOA are not easy.
“There are some very sophisticated, intelligent and dedicated individuals that are running hospitals that are seeking ways to ensure not only their success as they do every day, but now, unfortunately, also their survival,” Douglas said, adding that a JOA is more like an “umbrella” rather than a specific type of deal.
“You don’t say, ‘Let’s enter into a joint operating agreement.’ You say, ‘I want to work with you, or we need to, given the market,’” Douglas said. “And then what we end up with, we put a name on it.”
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