They have a strong balance sheet that enables them to acquire capital easily and cheaply, but they are shifting their staff to physician ratio from 6.11 to 7.5, indicating that their administrative cost structure is going to increase dramatically as a result of their current expansion strategy. Whether or not this represents a weakness that can be exploited by MCMPC remains to be seen, but it may materialize as a weakness in the future. There is the threat, however, that given the declining morale at MCMPC some of the clinic's physicians may defect to Innovative in order to advance their careers and improve the professionalism of their working environment.

The external environment provides a number of challenges for MCMPC. The unfortunate reality is that the company is ill-equipped to address many of these challenges. They have proven unable to build the key resources in specialists and referrals, and they have...
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