How to Make A Medical Group Merger Work


In this article by Healthcare Finance, there is an increased usage of hospital-physician integration activity. For example: practice acquisitions, physician employment and the development of narrow provider networks for care initiatives.

However, there has been a series of issues that the hospital-physician field faces; the history of the hospital-physician field is likely to occur again, hospital losses per employed physician at $175,000 a year, medical group practice is still the safest haven for physicians.

There are three important things that must be acknowledged before a medical group merger makes the returns possible for investing in this field of hospital-physician medical practice: Physician leadership (must have a strong physician leader), Stakeholder buy-in (buy-in stakeholders are essential to the success) and shared culture (create a common culture amongst the two different groups).

With these three essentials, mergers can receive a higher return more than the sum of their parts.

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