Physician Practice Consolidation: Considerations for the Remaining Independents

Abstract

Summary As independent physician practices face continuing financial pressures, integration with other organizations offers a mix of advantages and drawbacks. Practices may be acquired by hospitals, health plans, physician organizations, and/or private equity firms. Integration can lead to administrative efficiency, leveraged purchasing power, improved care coordination and clinical integration, and better contracting. In this article, the author provides a roadmap for those considering acquisition and shares insights on the processes and the pros and cons of the types of arrangements.