Practice Aggregation and Value Creation: Three Different Growth Models (2023 AMW)
2023 AAO-HNSF Annual Meeting & OTO Experience
Private practice otolaryngologists face headwinds related to rising costs and falling reimbursement. Maintenance of strong private otolaryngology practices is of critical national interest to serve our local communities by providing high-quality, cost-effective care. The days of solo practice and smaller practices are quickly dwindling. Practice aggregation and organic growth have helped many practices maintain their independence whereas in other specialties and, for otolaryngologists in certain regions, acquisition by major health systems has been the best solution. In this panel, we will present three different approaches to the maintenance of practice independence through growth and aggregation. One approach included aggregation of multiple smaller practices in a regional geography with later development of clinical integration. A second approach includes organic growth including development of a talent pipeline through the development of a community-based residency program. A third approach was a merger of two dominant local practices, followed by organic growth, further acquisitions, and then development of a private equity backed platform. We will review the mechanisms used by each of the practices to integrate physicians, increase revenue, develop professional service agreements with health systems, negotiate with payers, and reduce human resources expenses, and cost of goods. We will share our histories including our successes and our challenges and describe our plans for future growth and the tools we plan to employ to maintain our independence.
Credits
CME:1.0, MOC:1.0