5 Things to Know About Orthopedic Practice Mergers

Here are five things to know when considering a merger with other orthopedic practices. 1. Promote a common goal for physician buy-in. It's important for physician partners in large orthopedic practices to have the same goals and share in each others' success. When Michael Schwartz, MD, board president of OrthoTexas (a merger between four orthopedic practices), met with the other physician leaders to iron out the merger, it was important for everyone to understand that nobody was trying to take advantage of anybody else or profit from the other groups. "If we all worked together, we would benefit," he says. "A big part of the growth process was getting used to that idea. We're looking at this as a merger; this is for the benefit of us all. The merger will allow us to exist in the new healthcare environment in a better way than any of us could have in our individual groups."

After the initial meetings about the merger, the lead representatives from each practice went back to their respective partners and talked about the discussions. It was through these channels that the leaders were able to share their ideas with their partners and create a culture of trust and togetherness.

2. Consider whether merging practice surgeons would fit in with the existing group culture. A strong group ethic is important to preserve, regardless of how profitable a new partnership might look on paper. Make sure there is a comfort level between both groups before the partnership occurs, says Dan Murrey, MD, spine surgeon and CEO of OrthoCarolina. Don't merge with an unfamiliar practice or someone who is new to the area until you know they will fit within the practice culture. All of the merging practices with OrthoCarolina were longstanding referral partners of the physicians.

3. Keep lines of communication steady between practices. When there are several practice locations around the area, it's difficult for the physicians and leaders to see each other and manage the practice hands-on. "We have a lot of meetings and video conferencing and we do a lot to maintain the culture, which is really important," says Todd Albert, MD, spine surgeon and president of Rothman Institute in Philadelphia. "But you've also got to have a really great managerial staff." Rothman Institute has created several divisions within the company and appointed a chairman for each division. Dr. Albert has close communication with division chairmen and trusts them as leaders among other practice physicians.

4. Create strong physician leadership. Rothman Institute is a physician-driven organization, with Todd Albert, MD, as president. Dr. Albert also has several vice chairman who accept leadership responsibilities at the different practice locations and division chiefs for each subspecialty. "We look to our physician leaders to make sure the needs of our surgeons are being met," says Mike West, CEO of Rothman Institute in Philadelphia. "We are spread out, so it's kind of difficult sometimes, but since our central leadership is strong we are able to maintain cohesion in the practice."

5. It will take time to iron everything out. While the idea of a merger between the four groups was bouncing around early, it took a long time for the concept to come to fruition. "There were a lot of meetings and discussions that provided face time for people to get to know each other and become comfortable with their future partners," says Dr. Schwartz. Be prepared to spend a good deal of time working with your colleagues to make the merger work well.

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