Economies of scale
A larger health care community system can offer higher purchase volumes and a larger sourcing team. The academic medical center offers expertise in procurement for specialized products and services. Both systems benefit from sharing and streaming common overhead functions.
Economies of scope
A complementary pair of health systems improves local market density and access points. The academic medical center offers community system preferential access to specialists. The community system offers access to more health plan assets, whereas the academic medical center offers access to technology and drug discovery-related ventures.
Economies of structure
The community system offers lower cost of care settings for low-acuity patients. The academic medical center boasts centers of excellence with potential innovation/quality advantage. Together the partner systems enjoy mutually improved access to capital in public debt and/or equity markets, with the possibility that their brand will offer more philanthropy opportunities.
Economies of skill
A larger community system offers operational efficiencies in staffing, case management and patient throughput. The academic medical center offers more robust clinical protocols and quality/outcome programs. The partner system improves team-based skills across care pathways and consolidates clinical assets.
