CASE STUDY: MAKING AN ACQUISITION WORK

From A Deal Going South,
A Happy Ending Emerges
A group of partners in an independent anesthesiology practice had been providing services exclusively to a surgery center associated with a major hospital. The practice was well-established and successful, and the skills of the anesthesiologists were highly prized by the surgeons with whom they worked. 

A new parent organization says "We love you; now change." 

When a national physician services provider ("NPSP," for the sake of this brief) entered into a contract with the hospital, they sought to address perceived shortages in the anesthesiology staff levels necessary for round-the-clock coverage. Having integrated the private anesthesiology practice into the initial arrangement with the hospital, the NPSP turned to them first, pressing to fill the gap by boosting their hours and providing on-call availability. The partners, comfortable with their lifestyles and desiring no change whatsoever in the terms of their existing practice, pushed back. The conflict hardened, both sides became deadlocked, and the doctors' connection with the NPSP and with the hospital itself seemed doomed. 

VantagePoint listens, studies core interests and conflicts... 

Asked by the anesthesiology group to study their plight, VantagePoint entered a highly contentious atmosphere to consult with all parties, none of them hopeful that terms could be reached for moving the affiliation forward. However, drawing upon its own legal evaluations, financial modeling, contract review and extensive participation in the negotiations, VantagePoint was able to propose a creative solution. The outlines of a Professional Service Agreement (PSA) took shape when it was demonstrated that the NPSP could fill the coverage gap with additional hires of their own, using the savings gained by continuing their relationship with the doctors. 

...then delivers an unexpected result: Everyone wins. 

VantagePoint assisted further negotiations to finalize the terms of the PSA and, as a result, both sides have settled and come away with their core needs met. The anesthesiologists are now continuing their practice as before; managing their own schedules, earnings, office personnel and decision-making, and the NPSP has complemented the dedicated services of these highly-qualified doctors by hiring the additional staff they need to provide complete coverage for the hospital.

THE VANTAGEPOINT ADVANTAGE
 
Knowing how practices and  healthcare organizations  operate, and how sound  legal agreements can forge  good relations between the  two, we are well-qualified to  help our clients turn change  into opportunity.

WHO WE ARE
VantagePoint is a team of industry experts who are dedicated to improving the business of medicine. With vast experience in executive management, operations, finance, clinical services and compliance, we deliver unparalleled, measurable and quantifiable results for our clients.

 

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VantagePoint is an informational news article series produced by VantagePoint Healthcare Advisors.
With each edition we strive to bring vital information
to the healthcare industry on topics of policy, finance, compliance and business management.

 

Visit our website or call 203-288-6860 and learn more about how our team of industry experts can benefit your practice or organization.

 


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