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The Reasons Why Medical Practices Merge
By: Nick Hernandez, MBA, FACHE
Here are 5 reasons physician owners are choosing to merge their medical practices.
Medical practice mergers are a topic more and more dominant among physician owners. This trend shows no indications of slowing down. Practice mergers, however, are often driven for the wrong reasons.
While physician group mergers can have a profound impact on the business, too often practices view the merger itself as the strategic end-game. Value creation or value enhancement should be the primary goal of any merger. These are business combinations and the reasons for them are based on economic elements.
Remember, mergers can be risky if approached haphazardly and one miscalculation can cascade into huge financial losses. Many physician group mergers happen every year. Some of them garner media attention, while some just happen in a hush-hush way. But that’s not what is important. What actually matters is how many of these stand the test of time and how many remain a memory at best.
