Assess true partnership potential through pre-acquisition due diligence. Identify issues that may impact the strategic, cultural, operational, and economic integration of a physician practice into an acquirer’s enterprise.
Set a foundation of open communication and collaboration to ensure a successful transaction, post-acquisition transition, and ongoing relationship that optimizes return on investment.
National trends driving physician practice acquisitions
Unlike the first wave of physician practice acquisitions during the mid-1990s, today’s hospitals and health systems are acquiring physician practices to meet a strategic imperative of preparing for health care payment reform.
For independent physician practices, the new reform environment is making it increasingly challenging to go it alone. Moreover, federal laws, rules, and regulations provide a “safe harbor” for physician employment that enables health system support for physician practices and the provision of management services.
Acquiring an existing medical group can be an effective way to create the physician practice management infrastructure needed to support physician employment and achieve a greater level of integration into the delivery of accountable care.
How Southwind Helps
Reduce the missteps in acquiring physician practices
Southwind executives have been involved in hundreds of physician practice acquisitions and due diligence activities with practices ranging in size from one physician to more than 100 physicians. Often called upon to manage the turnaround of acquired physician practices that have performed poorly, our team knows what it takes to structure physician practice acquisitions for long-term success.
Conduct thorough due diligence
All too often, hospitals and health systems realize that a recently acquired practice is not a good fit for the physician enterprise only after the transaction has been agreed to and the transition is underway. Southwind’s due diligence equips your organization with the qualitative and quantitative assessments necessary to address potential challenges and make informed decisions on the front-end, prior to a binding agreement.
By looking at alignment through strategic and cultural needs—and by focusing on the operational components of a practice such as physician productivity, compensation, revenue cycle operations, information technology, and patient satisfaction—we help clients understand the factors that will affect the employment transition, its financial impact, and its long-term success.
In addition, Southwind focuses on integrating the practice into the health system to optimize practice performance and value to all stakeholders.
Learn More
For more information on acquiring physician practices with Southwind’s help, please contact us.
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