On Demand - Maximizing Value and Protecting Physicians in Strategic Partnerships-Presentation Slides

Presentation Slides

Pdf Summary

The document details a presentation by healthcare transaction attorneys Anjana Patel and Glenn Prives from Epstein Becker Green, focusing on physician partnerships, medical group mergers, acquisitions, and strategic partnerships. It highlights the rising trend in physician practice transactions, illustrating the significant growth over recent years.<br /><br />The presentation discusses why medical groups may consider strategic partnerships, citing benefits such as enhanced operational capacity, financial incentives, and access to advanced healthcare platforms. However, it is emphasized that partnerships may not suit every group, with some preferring to remain independent after exploring market alternatives.<br /><br />Key considerations for independent medical groups and ambulatory surgery centers (ASCs) include market consolidation, reimbursement changes, value-based payment adoption, and the shift toward outpatient care. The presentation underscores the importance of market testing and informed decision-making before pursuing strategic transactions.<br /><br />Detailed phases of transaction exploration are outlined, including initial valuation, market preparation, suitor negotiations, and transaction finalization. Each phase requires comprehensive due diligence, financial assessments, and multiple decision points for medical group representatives.<br /><br />The document also addresses factors affecting practice valuations, typically based on EBITDA, and the legal compliance issues that could devalue a practice, such as adherence to HIPAA, proper coding audits, and maintaining compliant incentive compensation plans.<br /><br />Letters of Intent (LOI) are elaborated upon, stressing their importance in setting foundational terms for transactions, confidentiality, exclusivity periods, and other binding terms. The necessity to negotiate LOIs thoroughly to pre-emptively resolve major business issues is emphasized to avoid extensive commitments of time and resources.<br /><br />Key terms for inclusion in LOIs and transaction agreements cover purchase price determinations, escrow requirements, working capital, non-compete clauses, transaction timelines, post-closing employment terms, equity rollovers, governance rights, indemnities, and exclusivity periods.<br /><br />The presentation concludes with a Q&A section, offering contact information for the speakers for further inquiries.

Keywords

physician partnerships

medical group mergers

strategic partnerships

healthcare transactions

market consolidation

value-based payment

transaction exploration

practice valuations

Letters of Intent

legal compliance