Physician group sizing: a strategic framework

Consistent with managed health care and associated fundamental shifts in health care economics, physician group sizing has evolved from a formula-driven analytical exercise to one which necessarily addresses a series of strategic issues relative to critical mass, scale economies, and market demands. Strategic issues, therefore, will take priority over operational considerations in determining group size. The methodology proposed considers interactions between qualitative assumptions (group goals/philosophy, market share targets) and quantitative variables (market demographics, physician capacity, physician supply, utilization rates, etc.) within the context of overall group vision relative to the market. Included is a brief case study that applies the recommended approach and illustrates three important considerations in employing the methodology.