Practice Assessments + Modeling
Your hospital may target a practice for acquisition, or the practice may come to you. In either case, you will want a solid understanding of the potential opportunity before pursuing it or conducting a valuation. Your options include not only saying yes or no to acquisition but exploring other possible business arrangements.
DGA Partners can help you determine what the practice will look like if taken over by the hospital, with employment of the physicians, and whether this is a relationship worth pursuing.
We can consider what the practice will bring to the hospital once acquired, potential side effects for other members of your medical staff, and the strategic importance of the practice for hospital services.
A DGA practice assessment includes assessment of:
The assessment will be based on a site visit, meeting(s) with the doctors and their staff, a review of historical financials, and financial projections that include simulation of physician compensation and other business adjustments, e.g. revenues, salary levels, benefits, rent.
- Physician productivity
- Practice payer mix
- Overhead expense compared with norms
- Issues regarding quality of care, or physicians recognized for excellence in specific diagnoses or procedures