In the current competitive healthcare environment, acquiring medical practices is an ongoing trend. Private equity might offer initial monetary incentives to attract physicians. However, it’s crucial to know that health systems, the organizations overseeing hospitals and healthcare facilities, also have unique benefits for physicians. When looking at these transactions, it’s essential to consider the specific characteristics of the physician group involved, such as their medical specialties, ages, and how comfortable they are with taking on financial risks.
Understanding what motivates the physician group and identifying key decision-making factors is vital for a health system planning an acquisition. Making sure the health system’s mission aligns with the values and goals of the physician group is important. If both share a commitment to providing good healthcare and serving the community, it creates a good environment for working together.
The community presence of a health system, built over time through its role in local healthcare, can be a big asset. Patients often have trust and familiarity with health systems that are deeply rooted in their communities. Integrated networks, where different healthcare professionals work together seamlessly, make the whole healthcare experience more appealing. It ensures that patients receive comprehensive and well-coordinated care.
Long-term stability is a compelling aspect that health systems bring to the table. Unlike private equity, which might focus more on short-term gains, health systems emphasize long-lasting partnerships and steady growth. This focus on stability can be important for physicians who want a secure and lasting connection.
HMS Partners Joe Augilar and Natalie Bell recently collaborated for a Medical Group Management Association (MGMA) Insight Article surrounding best practices for when a PE firm is interested in acquiring a physician’s practice.
To read “Knock, knock… Who’s there? Considerations for When Private Equity Comes for Physician Acquisitions” in full, click here.
