Consolidation is sweeping the healthcare industry and many independent practitioners are considering joining a larger practice.
Bethesda, Md.-based The Centers for Advanced Orthopaedics President Nicholas Grosso, MD, provided four key considerations for practices to consider regarding merger and acquisition activity in Health Leaders Media.
1. Financial sustainability. Physicians should closely assess their expenses and see if their practice can remain viable in the changing healthcare environment. Dr. Grosso cited a recent Government Accountability Office report that found costs associated with CMS' Medicare Access and CHIP Reauthorization Act and Merit-based Incentive Program total $40,000 per physician. These costs may be too high for certain practices and these practices should consider joining a larger organization.
2. Benefits. If a physician is considering joining forces with another organization, he/she should evaluate the specific benefits that organization will bring — Look at payer contracts, medical malpractice insurance, data mining technology investments, purchasing contracts and compliance management.
3. Independence. Changing practice settings can mean a loss of independence for private practitioners. Independent physicians should seriously assess how closely they value their independence on decision making.
4. The pendulum may swing back. While consolidation is currently the name of the game, Dr. Grosso notes more physicians may move to private practice. Dr. Grosso says hospitals will face difficulty reining in cost, as opposed to other practice settings.