Hospital revenue diversification: a case study in joint venture investing

In the last two and one-half years a suburban community hospital, through its parent corporation, invested $8 million in four new companies in an effort to diversify its revenue base. The important lessons learned during the process--including the need for a dedicated diversification team, commitment of funds equal to 150 percent of those required, and allocation of sufficient funds for marketing--can help healthcare organizations contemplating a similar revenue diversification effort.