Case Study

Understanding Physician Enterprise Value

  • Area of Expertise
    Financial Advisory
  • Services
    Physician Enterprise Performance Diagnostic
  • Company
    Large Urban Health System
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Large urban health system undergoing rapid expansion of its physician enterprise

Management desired to understand the physician enterprise’s impact on the health system financial performance as well as understand the key drivers of the physician enterprise’s financial performance


Established, with physician leadership, a “framework” to analyze the physician enterprise financial performance and health system financial contribution

The framework’s elements included areas such as core physician practice performance, programmatic investments, research, support services and commercial services (i.e., MSO)

Used an activity-based approach to analyze the physician enterprise operations and construct the financial impact model based on the agreed upon framework

The outcomes included the health system being able to make more informed decisions regarding future physician enterprise investments and capital allocation as well as a restructuring of selected areas of the physician enterprise

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