MRG News & Views – Physician practice mergers/acquisitions – July, 2014 Newsletter

Physicians reach out to hospitals for merger / acquisition

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Most of the physician practice acquisitions we hear about have been hospitals proactively targeting physicians. As the market continues its saturation of mergers and acquisitions we may start to see a shift toward physicians or physician groups reaching out to competing healthcare institutions for employment and acquisition of their practice.

In the past, hospitals would target independent physicians housed in their own properties with direct ties to the hospital. This would help maintain market share within the walls of the hospital. We are now seeing an increase in activity directly in competing hospitals’ properties. In many of these cases, physicians are making the initial contact and reaching out to the competing hospital about employment/purchase. This includes both small practices and larger physician groups.

In both cases, it’s important that the physician or physician group take the necessary steps to identify and show the value of their practice. Tangible and intangible factors will produce the value of the practice. Hospital administrators will do their due diligence to identify the value of the practice. It is also necessary for the physician to be proactive and identify the value of their practice prior to the negotiating process. This allows both parties to compare information gathered independently and quickly identify any discrepancies that may exist in evaluations. Both parties will be working together in the future, so it’s important to minimize any unnecessary strains that can occur during the negotiation process.

Spending a few dollars on the front end by engaging a third party auditing firm can go a long way. Establishing an unbiased view of the practice removes personal influences when discussions heat up.

The purpose of establishing “fair market value” is to identify the amount expressed in terms of money that can be reasonably expected between a willing buyer and a willing seller under no compulsion to buy or sell. The best way to achieve this is for both parties to be proactive during the due diligence process.

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MRG Recent Projects:

Manage Resource Group, Inc. has recently completed two infusion pump change-outs. MRG sold and removed more than 1,000 Baxter 6201/6301 pumps from both locations. 

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MRG’s Appraisal of the Month:

Sonosite M-MSK portable ultrasound FMV: $24,000.00

Sonosite Ultrasound

 

 

 

 

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MRG Fun Facts:

Many vacationers opt for a beach trip where they can share the waters with ocean life, including sharks.  There is evidence that sharks are one of the oldest creatures in the sea, living for more than 400 million years. In the early prehistoric times, sharks measured up to 80 feet long.  Currently, they are much smaller.  Today’s largest shark, the Great White, grows to lengths of only 25 feet. 

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Contact MRG:

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About MRG:

Manage Resource Group, Inc. is a privately owned healthcare equipment management company headquartered in Berea, Ohio.  Our client focused services create strategies for each customer to increase profitability on capital equipment.  We are industry experts offering the following service lines:

  • Inventory services
  • Appraisal services
  • Resale management

For more information, visit our website at www.manageresourcegroup.net

Cleveland, Ohio announced as host city for 2016 Republican National Convention

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Manage Resource Group’s hometown of Cleveland, OH was announced as the host city to the 2016 Republican National Convention. This is Cleveland’s first Presidential Convention since 1936. Cleveland was awarded the convention over other finalist cities such Kansas City, Denver, and Dallas.

Manage Resource Group has always been a Cleveland based company. We are very excited that visitors from all over the country will get to see how Cleveland has turned into a great city with so much to offer. Manage Resource Group is located near the airport, so if you are coming to the convention in 2016 or visiting the city for other reasons, please stop by. We would love to meet with you.

To read more about the RNC announcement: http://www.cleveland.com/open/index.ssf/2014/07/cleveland_gop_convention_annou.html

Happy 4th of July!

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This weekend we celebrate the blessings of our freedom and independence. May you enjoy a very Happy Fourth of July from Manage Resource Group, Inc.