The evolution of primary care networks.

Many physician practices and primary care networks owned by hospital-based healthcare systems have not been successful financially. By investing capital, time, energy, and management expertise in these networks, however, systems can dramatically improve their strategic advantage. A three-stage evolutionary process that is necessary to achieve this strategic advantage comprises practice acquisition, network development, and true integration. Although few primary care networks run by hospitals or systems to date have reached stage three, understanding the evolutionary process is a necessary first step toward success.