Healthcare organizations are universally experiencing increased operating expenses and, at the same time, static or even reduced payments. With declining margins, healthcare executives are looking how their organizations can increase revenue and reduce operating costs. A common strategy has simply been to increase the size of an organization thereby gaining economies of scale and effectively reducing unit costs while increasing negotiating clout to improve payment levels. This strategy has led to a wave of mergers and acquisitions among health systems, hospitals, and physician practices.
Faced with the prospect of being acquired by a health system, physician practice leaders need to evaluate the advantages as well as the disadvantages for remaining independent. This session will examine how a physician practice can retain its autonomy and resist the lure of being part of a larger healthcare system.
1. Describe economic advantages enjoyed by larger healthcare organizations and the potential diseconomies of scale that occur when organizations grow too large, too quickly.
2. Describe how an independent physician practice can obtain a market advantage while other healthcare entities consolidate operations
3. Describe how an independent practice can access the capital it needs to grow operations and exploit niche markets
MSHA, FACMPE ,
Senior Fellow, Industry Affairs,
Medical Group Management Association
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