Public physician practice management companies. Present issues and recommendations for future viability

For years, physician practices have been perceived as a "cottage industry". Like the old fashioned grocery stores, the opinion of some was that they were ripe for incorporation into organizations which could take advantage of economies of scale and other synergies. Today, many physicians and organizations are beginning to rethink their approach to physician practice management companies (PPMCs). Is it a viable long term strategy for physicians? Does it promote optimal patient care? Can investor-owned companies realistically respond to the health care needs of patients while meeting the financial demands of investors? This article seeks to explore these issues, to examine the current nature of the physician practice management industry, and discuss what PPMCs might do to add value to the practices they manage.