Member-only story
The Most Common Reasons for Failed Group Practice Mergers
By: Nick Hernandez, MBA, FACHE
Nine common reasons for failed group practice mergers and what you can do to avoid them and ensure your merger’s success.
Physician group mergers can have a profound impact on the business. However, too often practices view the merger itself as the strategic end game. Successful groups, however, understand that the deal is a means to an end and not an end in itself.
Merging with another practice can indeed be a powerful tool for your group to achieve growth and build long-term value. The process of merging physician groups can go off without a hitch, but this is not always the case. To avoid a transaction failure, practices need to think about integration through every step of the process.
Key merger mistakes to avoid
Here are a few key mistakes that are often made which could be avoided with more thoughtful reflection.
1. Failing to define a vision before the integration occurs
Crafting a vision that clearly spells out the opportunity inherent in the transformation ahead should start long before a deal is pursued. However, often this does not happen.
