Mergers: Pause and Question

Good post by good friend and colleague, Mark Weiss at the Advisory Law Group:

Strength in numbers. Or is there?

Medical groups seeking alternatives to the sale of their practice to a hospital often consider merging with another group. There’s nothing wrong with the notion of a merger. Often, there’s something right. But not always. For example, merging two weak performing groups rarely creates a strong one. Think Sears plus Kmart.

Merging even two strong groups can be problematic, as there’s far more to a successful merger than balance sheets — focus, personnel, management style and group culture play determinative roles.

I’m not saying don’t consider a merger: If you’re looking at alternatives you have to. But seek the right merger partner — a strategic merger, one in which one plus one equals 3 or more. Bad math, but good business.

Have questions? I’m here to help.

This field is for validation purposes and should be left unchanged.
This field is for validation purposes and should be left unchanged.
Categories
Accounting and Tax Services Litigation Support Managed Care Consulting Managed Care Contract Negotiations Medical Practice and Healthcare Entity Valuation Medical Practice Assessment Medical Practice Brokerage Medical Practice Embezzlement Consulting Medical Practice Management Medical Practice Merger Advice Medical Strategic Planning Newsletter Personal Financial Planning Oversight Physician Compensation Models Physician Compliance Physician Financial Management Services Retirement Uncategorized
About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read More >

Reed Tinsley, CPA