At the 10th Annual Orthopedic, Spine and Pain Management-Driven ASC Conference in Chicago on June 14, Leslie R. "Les" Jebson, executive director of the University of Florida Orthopedics and Sports Medicine Institute in Gainesville, discussed the costs and benefits of orthopedic practice mergers. Some of the benefits of merging orthopedic practices include integrating accounting functions, leveraging supply purchasing, negotiating better contracts, taking advantage of IT, facilitating physician recruitment and unifying a quality improvement program.
One of the challenges of merging practices is ensuring compliance with antitrust laws. While practices are responsible for seeking legal counsel to determine if the arrangement is legal, some tips include not increasing market share excessively and ensuring the merger offers precompetitive efficiencies, according to Mr. Jebson.
Mr. Jebson presented five steps for completing an orthopedic practice merger:
1. Identify conventional and non-conventional partners.
2. Form a merger joint planning team with designated leaders from both groups.
3. Validate merger feasibility through an objective assessment/study.
4. Establish a consistent decision-making structure.
5. Build trust and promote teamwork.
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One of the challenges of merging practices is ensuring compliance with antitrust laws. While practices are responsible for seeking legal counsel to determine if the arrangement is legal, some tips include not increasing market share excessively and ensuring the merger offers precompetitive efficiencies, according to Mr. Jebson.
Mr. Jebson presented five steps for completing an orthopedic practice merger:
1. Identify conventional and non-conventional partners.
2. Form a merger joint planning team with designated leaders from both groups.
3. Validate merger feasibility through an objective assessment/study.
4. Establish a consistent decision-making structure.
5. Build trust and promote teamwork.
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