Physician Groups Should Consider Strategic Options as Mergers, Acquisitions Boom

MGMA Connection May 2018

Gary W. Herschman, Member of the Firm in the Health Care and Life Sciences practice, in the firm’s Newark office, authored an article in MGMA Connection titled “Physician Groups Should Consider Strategic Options as Mergers, Acquisitions Boom.”

Following is an excerpt:

Even if your physician group is successful and your doctors are happy, you are doing your group a disservice if you do not actively consider strategic options for the future — even if you eventually choose to do nothing and continue with your group’s current business plan. Some strategic options may be extremely lucrative to your physician owners.

Major changes are afoot in the healthcare industry: substantial consolidation, value-based payment and risk programs (bundled payments, etc.), enhanced focus on care coordination, quality and population health and advanced EHR. Physician groups have several strategic options to consider, all of them involving larger, well-capitalized organizations that are investing substantial capital to strategically position themselves and their partners for success and profitability as the industry undergoes transformation.