Managing Threats from Venture Capitalists

Dallas Medical Center (DMC) is a 100-year-old, community-based hospital located in the Dallas/Ft. Worth area and services an eight-county region. DMC is well-known throughout the community for its strong brand-name recognition among physicians and competitors. Tom Thomas, the CEO of DMC, realizes that state regulations in Texas do not require a certificate of need for hospital-based systems; therefore, these privately financed venture capitalists represent a huge threat to DMC. With cardiology representing $63 million in revenue, the potential financial threat to both the organization as well as careers could not be greater.