physician services transactions
- Investor interest in physician practice management remains elevated and 2023 represents an excellent time for physician organizations to consider adding a strategic partner.
- While the Covid-19 pandemic is over and physician organizations are returning or exceeding pre-covid volumes, operating challenges created by the pandemic, such as staffing, and enhanced patient acuity remain. These persistent operating conditions, coupled with sustained investor interest, are providing physician organizations with the opportunity to strengthen their organization by adding a strategic partner at attractive valuations.
- These partnerships provide an opportunity to affiliate with a larger entity or remain independent while improving its financial strength, enhancing revenue, and adding greater efficiencies. It can also help accelerate an organization’s ability to transition to greater value-based revenue from fee-for-service.
- Furthermore, these transactions provide an opportunity for physician owners to monetize a portion of the equity they have built over the years of serving as a physician and will typically be treated as capital gains vs. personal income.
- Physician organizations that are interested in strengthening their position in today’s dynamic healthcare environment should consider all the advantages a strategic partner can bring.