3 Factors to Consider When Merging Practices

Written by on November 1, 2017 in Insight - No comments
DoctorThinkingWEB

The reasons medical practices merge with one another have been pretty much the same for the past 20 years. Among them are acquiring more medical expertise, office space and purchasing power, increasing the volume of existing and new business, and having access to a stronger administrative model.

Be that as it may, the stakes are high and there’s enormous urgency on recently blended practices to accomplish immediate cooperative objectives to insure healthy mutual financial returns. Three basic factors must be taken into account before the merger happens in order to make positive returns possible.

1. Physician Leadership. A practice is only as good as its lead doctor or doctors. This is the human capital to take into account when merging practices. At the point of the final merger when individual doctors combine their practices, one unavoidably will assume the role of the practice leader and the others will play secondary parts in the practice’s leadership. To make the merger fruitful all must be in agreement on practice leadership to survive and flourish as a combined unit.

2. Investment of Partners. If you have an administration assignment in a medical merger, you’re a partner. If you’re a shareholder, then you’re also a partner. Furthermore, if you’re a staff doctor, then you’re a partner. Partners incorporate everyone from practice administrator and support staff to the lead doctor.

Any specialist or lawyer who handles mergers and acquisitions will reveal to you that getting the upfront investment of partners is basic to accomplishing a successful merger. While this doesn’t necessarily recommend a law based process where representatives must approve the merger, it does call for an insightful, proficient process that incorporates communication and training for all individuals of the practices involved well ahead of the acquisition’s finalization.

3. Shared Culture. At the point when two medical practices blend, they don’t simply consolidate their financial earnings; they also acquire offices, hardware, supplies, workforce, plans, and a variety of different components as the practices combine. The merger of healthcare offices is made much more perplexing by the nearness of the doctors, who are the proprietors, each possessing their own values and methods.

Doctors bring their own clinical aptitude, medical expertise, and hard working attitude to the merger. They likewise bring their inner selves; personal feelings, numerous self-imposed professional goals, and, every so often, psychological or behavioral baggage. All should be taken into account before the merger happens to avoid future problems.

Medical practices considering a merger as a viable business option need to understand their success depends on the leadership of their doctor(s), the upfront investment of all partners and a smooth transition into a combined culture pleasing to both practices. By using these three basic factors, medical practice mergers can start strong and find their combined efforts create a better and more profitable whole for all parties involved.

By Vishal Gandhi, BSEE, MBA
Founder and CEO
Clinicspectrum

Leave a Comment

Please type the characters of this captcha image in the input box

Please type the characters of this captcha image in the input box