The future of physician practice management companies.

Physician practice management (PPM) companies are growing sector of the healthcare industry and have caught the attention of Wall Street, as evidenced by the number of initial public offerings of PPMs in the past three years. The cost of operating efficiencies, declining premiums, integration, oversupply of specialists, shift from a gatekeeper to a direct-access model, and cultural challenges are the emerging market forces that may affect PPM viability. The challenge for PPMs is to maintain earnings growth in the face of these market forces.