To merge or not? Are you willing to pay the price?

Article Abstract:

Physicians considering merging their practices need to determine whether the emotional and monetary costs incurred by the merger will be outweighed by the longterm financial benefits. Physicians who have already asserted themselves as successful health-care providers in a community and whose quality and price of service have attracted the patronage of insurance plans might want to think twice about merging practices with other, less successful physicians. Mergers should be pursued if they would reduce the service costs while increasing the profitability of physicians' practices.

Mergers, acquisitions and divestments

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Doctors turn to management companies

Article Abstract:

Physicians and medical groups are increasing joining for-profit practice management companies (PMC). These companies offer physicians strong management expertise, and they are a source for capital and information technology. Such PMCs are posting average annual growth rates of 30%, and their overall market share in the $24 billion industry is at a mere 2%. Most of the physicians and medical groups who have joined PMCs have reported favorable results, although there remains some concern that a for-profit PMC organizations may not be beneficial for patients.

Medical corporations

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