How a Physician Practice Can Negotiate an M&A Project with a Health System - Option 1

October 06, 2015

What are the Business Model Options that physician organizations have?

Option 1: The Physician Practice Acquisition Model

In this segment we discusses why the pure acquisition option is the favorite for most health systems. Physicians and their staff become employees of the health system and the physician practice as an entity will be liquidated.

Transcript

0:00 The first option, which is more of a pure acquisition, is the favorite for most health systems. It's the easiest and the cleanest way for them to bring a practice into a system and basically what happens there, is that physicians and their staff become employees of the health system.

0:25 The physician practice itself as an entity will at some point — usually about a year after the deal is finalized — get liquidated; no longer be in existence at that point.

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