This blog post was written by Christopher Collins, Principal, and Dan Harrison, Senior Manager.
The clinical enterprise is the economic engine of an academic medical center (AMC). By clinical enterprise, we are specifically referring to the academic health system (AHS), which is the combined assets of the teaching hospital, the clinical faculty, and the affiliated or owned nonacademic (or “community”) physicians.
AMCs are built around the tripartite mission of delivering exceptional clinical care, advancing research, and educating the next generation of providers and researchers. Yet, research and teaching programs within AMCs are increasingly unable to sustain themselves through their traditional revenue streams. As a result, an alternative means of investment is required to sustain and grow these critically important programs, and the only remaining means of generating a predictable and healthy margin is through the performance of the AMC’s clinical assets. This critical source of funding may be at risk, though, for organizations that are not strategically and organizationally well positioned. Continue reading