Health systems should review their physician practice acquisition playbook to ensure best practices are being followed in order to reduce execution risk, minimize transaction costs, and establish successful, long-term partnerships with providers.
Research suggests that many physicians are no longer interested in serving as both owner and provider within a physician practice setting, as evidenced by the more than 100,000 physicians who have shifted to employment since January 2019. Payer challenges, increased overhead costs, and burnout caused by the COVID-19 pandemic have made it difficult for physician owners to continue to run a profitable practice without the support of a strategic capital partner. As a result, independent physician groups are becoming more open to considering employment models with health systems and other corporate entities.
For health systems contemplating the acquisition of primary care or specialty groups, it is important to establish a framework that can be used to evaluate and effectuate transactions in a timely and compliant manner.
Edited by: Matt Maslin and Jay Santini
Designed by: Mary Anne Akhouzine
Published December 14, 2022
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