Leading providers of primary and specialty care are expanding their business model by coming together as physician-owned groups. There’s been a consistent trend of healthcare moving to outpatient facilities, both for greater reimbursement rates and more focused patient care, and physician groups are cashing in on this trend while also providing better service for patients. Their mergers and acquisitions (M&A) model has shown an improvement in quality with direct physician-patient relationships eliminating most of the administrative burden in between. Lowered administrative costs for smaller practices means reduced prices for patients, which keeps them coming back for all their healthcare needs.
Through our inventory and assessment work for M&A, we’ve also seen a trend of physicians being acquired by large health systems rather than remaining in private practice, mostly for financial stability. The surge in physician group acquisitions and impressive clinical results makes joining one of these groups a viable third option. Their strength in numbers allows them to build business relationships with local hospitals and health systems. This ends up being the perfect middle ground that gives practices more hospital privileges, stronger financial and clinical resources, and maintained freedom for physicians as business owners. Along with timesharing and other non-traditional partnerships, physicians have more options than ever to find a consolidating strategy that best suits their practice’s interests.
Recent M&A activity shows the decline of the megamerger and an increase in acquisitions of smaller value, meaning physician practices are a prime target for both hospital-owned and physician-owned entities. With more physician groups growing in scale, there is evidence that the M&A landscape is changing to address physician autonomy and putting the patient first, rather than solely focusing on market gain. These groups are pinpointing this intersection and truly actualizing value-based care.
Read more about an Ohio physician-owned group’s strategy for success: https://mimivanderhaven.com/articles/noms-healthcare-provides-affordable-patient-centric-care-in-a-boutique-environment