A RURAL MEDICAL CARE DELIVERY SYSTEM

CORE FACILITY

The Medical Arts Clinic Association of Corsicana was founded 25 year ago September 26, 1952, by four American Board Certified specialists. It is now a 28 man multi-specialty clinic located in a rural community of twenty thousand population. It operates on a fee for service basis. Location is in the central part of Texas, fifty miles south of Dallas, 180 miles north of Houston, fifty miles east of Waco and 80 miles west of Tyler. Its documented service area is nine counties with a population base of 225,000 rural citizens. It has an expanding patient load of 120,000 patient visits each year and is currently handling 8,000 new patients a year. The clinic operates as a Professional Association. All assets are owned by a holding company (MAC Company). Each new member of the Professional Association contracts to buy into the holding company within a maximum time period of four years after beginning practice. Buy-in is by a formula based on book value (cost minus depreciation) not taking into account any relationship to market value. All physicians come into equal ownership of all assets, for a cost basis maintained at under $15,000.

A newly recruited doctor becomes a contract physician of the Association on a guaranteed base salary or a percentage of his gross allocated collections, whichever is greater. In fifteen months, he becomes a full associate by making a minimal cost ($295.00) equal stock purchase, in the Medical Arts Clinic Association of Corsicana. The new associate immediately participates in ownership of all accounts receivable and all profits of the Association. There are no junior associates. Profits of the Association are divided on the basis of a simple formula which divides a percentage of the net profits to the individual physician, based on his allocated percentage of gross collections. This decision is at the discretion of the Board of Directors. It raises the remuneration base of the lower income producing primary care physicians, but provides incentive for increased practice expansion by all physicians. The Association provides participation in pension and profit sharing trusts and other fringe benefits for all employees. It provides centralized management, free transferability of assets and assurance of perpetuity of life of the Association. The Association operates through a President and Board of Directors which meets weekly for a two hour planning session. The President and Board Members are responsible to all physician stockholders of the Association. Decision making is by a dynamic process which flows from specific committees, to the Board of Directors, to the group as a whole. All Executive and other committee meetings are open, and minutes are furnished for the group as a whole at its regular monthly meetings. Complete monthly financial reports are furnished all associates and reviewed at the monthly meetings. All policy decisions are made by a majority of all associates, except decisions affecting the By-Laws of the Association. Each member has an equal opportunity for a voice in the Association policies dependent only on his talents and interests.

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