The Art of Physician ConsolidationScale Platform Insights July 23, 2020
Gary W. Herschman, Member of the Firm in the Health Care & Life Sciences practice, in the firm’s Newark office, co-authored a whitepaper for Scale Platform Insights, titled “The Art of Physician Consolidation,” a collaborative piece written with SCALE Physician Group. (Read the full version – download required.)
Following is an excerpt:
Now more than ever, individual physician practices face complex challenges and an unpredictable industry environment. One way to protect themselves from these challenges and the obstacles associated with evolving market dynamics is to grow.
Growth can be beneficial regardless of whether a group wants to remain independent, or partner with a hospital, private equity investor or national healthcare company. Being part of a larger organization has many benefits that can enhance a group’s ability to survive and thrive in the uncertain future, most significantly by having a professional, corporatized infrastructure – such as advanced EMR, finance department, managed care contracting, population health expertise, billing/collection, HR and compliance functions, etc. – that can be shared by many, as well greater access to capital for strategic positioning, and weathering pandemics and economic downturns. Physician practices are thus faced with a very difficult decision – how do we grow?
The following pages focus on why practice consolidations offer a broad range of benefits to stakeholders and can result in a more valuable or sellable platform in the future, or increase the likelihood of success in remaining independent. We at SCALE, along with the expertise of our vast network of operating partners, have developed a playbook for executing a successful physician growth strategy, and believe that practice consolidation is a significant opportunity for many existing physician practices looking to grow. Together, SCALE and consolidating practices are able to tackle the unique complexities that come with combining business processes; all while creating significant value in both the short and long-term.
Learn more about how to successfully tackle the unique complexities that come with combining business processes by downloading the whitepaper.