What Physicians Should Consider Before Exploring a Strategic Partnership

Partner or Stay the Course

Whatever you decide you should understand the impact that either decision will have on your Organization in the short and long-term

Test the Market

Regardless of what you decide to do fully understanding your options and impact any decision will have on your organization is important to do

Make a Fully Informed Decision

You have the ability, if you decide to explore your opportunities, to fully understand what value a potential partner may bring and whether or not it is right for you

8 Key Considerations Facing Independent Medical Groups

Marketing Consolidation

Consolidation is resulting in larger and more well-capitalized competitors

Reimbursement & Regulations

Uncertain and challenging environment and continued regulatory changes

Power Players Acquiring Referral Sources

Primary care referral sources are being gobbled up

Value-Based Payment

Shift from fee-for-service to value / risk-based payment structures

Direct Contracting

Expertise and scale in direct contracting with self-insured employers grows

Capital for Growth

Capital is required for IT, analytics, EMR, expanded services, etc.

Focus on Outpatient

The continued shift and migration to outpatient setting is enabling independent and right partnered groups the ability to grow

New Normal

Uncertainty surround the “new normal” post pandemic and challenges that groups face managing this alone

3 Reasons Physician Groups Decide to Create Partnerships and Transact


Benefits of Larger Corporate Infrastructure for Growth and Success

  • Greater access to capital required to grow infrastructure, recruit and more

  • Experienced and sophisticated corporate executive leadership

  • Investment in latest IT, data and EMR systems and analytics

  • Cost savings associated with scale through improved functions and staffing

  • Lower operating costs with group purchasing


Future Ricks and uncertainties in Medical Practice

  • Changes in Reimbursement impacting Medicare and Commercial Payors

  • Heightened competition from hospitals and healthcare systems

  • Acquisitions of independent PCP referral sources

  • Slow but continuous shift to value-based payment risk contracts

  • Continuing growth of direct contracting with self-insured employers


Monetizing the “True Value” of a Medical Practice

  • Resilient market with high valuations

  • Excellent time to “monetize” at tax-advantaged rate

  • Eliminate some risk and take some cash off the table

  • Additional equity event(s) for physicians based on subsequent PE transactions

  • Much higher buyout of rollover equity upon retirement, disability, death, etc.

Is a private equity backed group right for my future?

Fit of Potential Partner

The overall cultural fit, track record, and specialty expertise of the potential private equity partner organization is important

Infrastructure & Growth

The need for working capital to invest and support practice infrastructure and growth is of real value

Risks, Reimbursement & Regulations

Local and regional market risks impacting the practice within the context of changing and regulatory programs

Monetizing Ownership

The importance of “monetizing” the value of historical physician ownership relative to forgoing non-clinical business and/or operational autonomy

Let’s Discuss Your Options

For more than 20 years Physician Transaction Advisors has represented the best interests of physician-owners in more than 300 strategic partnerships or real estate transactions. If you are considering a strategic transaction, provide your contact information below and we will reach back out to set up a time to discuss your business.

Our Risk-free Process:

Physician Transaction Advisors runs a risk-free process, meaning there is no cost or obligation to consummate a transaction unless you get the results you want.

Our risk-free process gives physicians the ability to fully evaluate potential partners and understand how the market values their organization. PTA is not an investment banker or a broker. We are physician advocates and advisors, working transparently to ensure the financial and non-financial goals of our clients come first and are met through a successful transaction process.