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Physician practice mergers: The importance of due diligence and mutual trust

Insight Article

Partnerships, Mergers & Acquisitions

As healthcare moves further into managed care, physician practices will struggle to survive and avoid mergers and acquisitions (M&A). In today’s rapidly changing environment, more groups are finding that they must make tough business decisions that will affect the physicians, healthcare administrators, staff and patients. Merging independent medical practices into healthcare organizations, larger groups or larger independent practices is becoming a common strategy for dealing with government regulations and physician reimbursement.
Despite the benefits of M&A, practices should conduct an analysis of the risks so that the final decision on merging or being acquired will be made based on complete and accurate information.

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About the Author

Kelley H. Rice MBA, FACMPE