Healthcare consolidation is an inevitable consequence of today’s medical environment. As a doctor, it is essential to know the value of your practice and how to position that value when considering the merger or sale of your practice.
At GILE, we advise our clients to carefully consider the following when evaluating a merger:
1. Does the level of care of the purchasing group match your own commitment to patients?
Patient care is the foundation of your reputation and your practice’s value. If the group’s philosophy or patient protocols fall short of your standards, it can harm not only patient satisfaction but also your professional credibility. Aligning with a group that shares your values ensures a smoother transition for your patients and staff.
2. What are the future plans of the purchasing group—growth or sale?
A group focused on long-term growth may provide stability and expansion opportunities, while one planning to sell soon could expose you to disruption or ownership turnover. Understanding their strategy helps you decide if their vision aligns with your personal and professional goals.
3. What is the management structure of the purchasing group?
A clear, transparent management structure is critical. Without it, decision-making can become inconsistent, leaving physicians frustrated and disengaged. Ask who makes operational decisions, how conflicts are resolved, and what role you would have in shaping policies.
4. What benefits does the purchasing group bring to the individual practitioner?
Consolidation should not only benefit the group but also enhance your career. Look closely at compensation models, support services (billing, marketing, HR), and opportunities for professional growth. The right group should help reduce administrative burdens so you can focus more on patient care.
5. Are there considerations for group ownership in profit centers such as surgery centers or real estate?
Equity in ancillary services or real estate can significantly increase your long-term wealth. Many groups create these opportunities for their partners, but not all do. Understanding whether these are available—and how ownership is structured—can impact both your financial return and your influence in the group.
While the medical industry is trending toward consolidation, it is essential to take a thoughtful, strategic approach. With the right advisors, you can protect the value you’ve built and position yourself for long-term success in a new structure.
