Considering a practice merger?
Consider this first: It’s never as straightforward as it sounds. True, a merger can be a wise and potentially lucrative move for your medical practice. But if it’s not done correctly, it can expose you and your partners to a plethora of risks, including those associated with antitrust, and even a divorce.
As an independent merger facilitator with more than 30 years of experience, I help you understand what you’re getting into before you take the first step. Most important, I facilitate the entire process, setting your practice merger on a path to success.
The right medical practice merger for you
The most common type of medical practice merger is to create a “clinic without walls.” This involves merging multiple practices while allowing each to keep its office location and profit center.
Another is a direct merger, in which a medical practice is absorbed by another. For example: a small medical practice merges up into a larger practice.
The costs associated with a medical practice merger
Part of my role as an independent merger facilitator is to make you aware of potential costs before you dive into the process. These could include hiring professional assistance as well as, after the merger, establishing a new website and brand, hiring employees, and purchasing a new electronic medical records system. You’ll also need to devote time to attending pre-merger meetings and discussions.
Thinking about merging your practice can feel overwhelming. It’s not unusual to have ruminated over a potential merger for years. My goal is to help you move forward with confidence—whether that means going ahead with the merger or recognizing that it’s not in your best interest.
Merging your medical practice with another practice or group of practices involves a lot of moving parts and tough decisions. Regardless of your situation, my practice merger advice is this: Leave your ego at the door and be ready to compromise. This is why the key to a successful medical practice merger is to proper due diligence. As your practice merger facilitator, I handle this critical activity, which involves the following:
- Review and assess the “why” behind the merger.
- Identify issues to be resolved before merger takes place.
- Decide whether the merger should even take place.
- Provide a framework for how the merger should happen.
- Communicate the benefits of the merger to all parties involved.
As part of assessing the merger’s feasibility, I review facilities, prepare cash flow projections, outline projected start-up costs, and evaluate tax issues. In addition, I walk you through the new entity’s organizational structure, legal structure, physician compensation plan, contribution of assets, and other critical considerations. If the merger is a “go,” I facilitate the contract development and implementation, including the drafting of the entity and physician agreements.
Also, I make sure all parties involved understand the merger’s potential qualitative and quantitative benefits. Each person involved should be able to answer this question: What’s in it for me? If they can’t, the merger shouldn’t happen.
Move forward with confidence.
Like any business merger, medical practice mergers are highly complicated. The reality is, you don’t know what you don’t know. Having spent the last 30+ years guiding physicians through the process, I can help you avoid common pitfalls and make the right next step.
Contact me to get started today.