What are the Medical Practice Merger Deal Busters

July 27, 2015

To download this article, click here: What are the Medical Practice Merger Deal Busters


Merging requires thought, commitment and team-building, experts stress. Without it, a merger can quickly
disintegrate or erupt into an economic and emotional disaster.

There are several major issues that must be discussed because they are definitive “deal-busters”:

  • Medicare participation. What if some doctors participate and others don’t? The group has to make
    one election.
  • Retirement planning. The biggest problem is some doctors have a retirement plan and others don’t.
    The doctors who have a retirement plan want to continue. The doctors who don’t, aren’t so willing to
    put the money into it.
  • CPT coding. What if one of the doctors is actively “gaming” the system? When one doctor is upcoding
    and overutilizing ancillary services do the other doctors want to get into bed with a doctor who is
    doing that?
  • Fringe benefits. What are the fringe benefits that each doctor is giving to his employees? Some are
    very generous and some aren’t. But you just try to take something away from an employee. See what
    happens.
  • Use of equipment. Suppose there are four practices with four different computer systems. Which one
    are you going to use? And what do you tell the other three practitioners to do with their systems?
    What if there are four ob-gyn’s and each has an ultrasound machine? If Doctor ‘X’ gets to sell his
    ultrasound machine, what does he do with the money? Must he channel it into the group, or should
    he keep it?
  • Human resource issues. This is a thorny issue in any merger, due to the fact that physicians are
    generally very loyal to their staffs. In some mergers, there will be staff members whose jobs are
    eliminated. And, there is also the question of which one of the physicians will manage the staff.

To download this article, click here: What are the Medical Practice Merger Deal Busters

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