On Demand - Maximizing Value and Protecting Physicians in Strategic Partnerships-Webinar Recording

Video Transcription

Video Summary

In the webinar hosted by MedAxiom titled "Maximizing Value and Protecting Physicians in Strategic Partnerships," attorneys Anjana Patel and Glenn Previs from EBG discussed the intricacies involved in physician practice transactions over the past decade. They noted a significant rise in such transactions, especially in 2021, driven by macroeconomic conditions and increasing consolidation in the healthcare sector.<br /><br />The session detailed why physician practices might consider strategic partnerships, emphasizing that the decision is complex and highly individualized. Potential partners include hospitals and health systems, payers and strategic players, private equity, and mega groups, each with its own set of pros and cons. <br /><br />Key considerations in these transactions include understanding the practice's fair market value, calculated based on EBITDA, and conducting thorough due diligence to uncover compliance and financial issues that could threaten deal completion. Special focus was given to the role of private equity in healthcare investments and the benefits and challenges associated with such partnerships.<br /><br />Patel and Previs discussed letter of intent (LOI) intricacies and highlighted the importance of exclusivity clauses. They also covered post-closing employment agreements, rollover equity, and indemnification, emphasizing the need to negotiate terms that safeguard physician autonomy and fair compensation.<br /><br />They concluded by stressing the importance of preparing for due diligence and understanding potential deal-breaking issues, while also noting that strategic decisions should not be rushed and require thorough internal consensus and market understanding. <br /><br />The session ended with a Q&A, addressing common physician concerns, including changes to professional life and disparities in priorities within multi-generational practice groups. They invited participants to reach out directly for further queries, ensuring comprehensive support.

Keywords

physician practice transactions

strategic partnerships

healthcare consolidation

fair market value

EBITDA

due diligence

private equity

letter of intent

post-closing agreements

physician autonomy