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Physician group practices hold an ideal spot in the healthcare market. Practices are generally smaller than traditional hospitals, and usually focus on a single specialty. This allows providers greater flexibility in many aspects, including services provided to patients, hours of operation, charity care spending, and more. Specialists can also benefit from employment in a group practice, surrounded by providers in the same field that fosters cooperation rather than competition. Smaller physician practices in particular can adapt to the evolving needs of the healthcare marketplace faster than hospitals and health systems due to their size and limited offerings without compromising care coordination and delivery.
Most Recent Physician Group Mergers & Acquisitions
Fig 1 Data from Definitive Healthcare
However, in the era of mega-mergers and frequent facility acquisitions, many physician group practices are looking to combine resources and increase their imprint on the local market. The popularity of retail and urgent care clinics is a constant source of competition for group practices, spurring physician group mergers across the country. Mergers and acquisitions allow practices to improve care offerings and diversify the specialties of employed physicians, attracting new patients without increasing costs. By merging or partnering with other physician groups, practices can effectively compete with hospitals, clinics, and other local care providers.
Areas of Focus in Physician Group Mergers & Acquisitions
It's easy for physician group leaders to get caught up in the minute details of a merger and forget to ask essential questions that align with the goals of all involved parties. In addition to the obvious details like business strategy, the cost of the partnership or acquisition, and location, there are other aspects to consider when combining two or more physician group practices. We've compiled a list of categories that can be overlooked in the hustle and bustle of physician group mergers.
Physician group practice mergers carry significant risk, particularly when it comes to financials. For more information on reducing physician burnout and managing patient care, check out the Definitive Blog!