Creating an additional pathway to grow a group medical practice.
Traditionally, private practices hire medical practitioners fresh out of school, hope their
references are accurate, see if they fit into your culture, and then try and fill their schedules
with patients. There is also the expensive proposition of building and then opening
additional locations. An effort that expends a great deal of time, effort, and money.
A viable, and possibly better alternative is to look at the other practices in the same
specialty and start a conversation. Upon identifying a potential small established group,
analysis must take place. The practitioners must all have positive attitudes and work ethics
along with excellent medical and interpersonal skills. While one might think that one
would find everyone on their best behavior, problematic behavior is surprisingly common.
Another piece of the puzzle is making certain that the cultures can meld. For example, if
one group has a more authoritarian culture or formal hierarchy than another they may not
If the conversations and meetings go well, and if the cultures show compatibility, then
further steps can be taken. A review of the pain points of the principals and senior
management needs to be undertaken so as to consider methods of resolution. These might
be decreased revenue, increased overhead, overwhelming bureaucratic, or infrastructure
This leads to building a relationship where they can become part of a larger organization
that will take their pain away and make them stronger while also strengthening the larger
From a dollars and cents perspective a new office can easily cost $750,000 to build out as
opposed to the lower cost of converting an existing space. The building up of a patient
population can take up to a year versus acquiring an existing patient base. In the first year
alone, this can create a savings of over $1,400,000.