The joint operating company: an innovative approach to collaboration

Hospitals interested in horizontal integration often run into difficulties. In spite of otherwise sound business logic for two organizations to merge, there may be political, legal or financial reasons why a merger option cannot be pursued. Increasingly, enterprises are turning to a joint operating company structure as the solution to their needs. Scott A. Mason and Donald W. Seymour, partners with consulting firm National Health Advisors, explore situations where a JOC model of collaboration may be appropriate.