Session Description
Even as other radiology groups sold to physician practice management companies starting over a decade ago, and even with the most recent proliferation of closer alignments with hospitals, many radiology groups still want to remain as independent as possible. Ironically, groups are increasingly considering strategies for consolidating with other radiology groups as a way to maintain independence. Some consider forming a management services organization, but often they at least evaluate, if not move directly to, some type of merger transaction. Many legal considerations (e.g., tax impact) can impact what strategy is chosen. Economics and control have always been important, especially from a legal standpoint. Similarly, leadership (which is different from control) before, during and after the consolidation can make or break the deal. And how this is documented is critical. Indeed, leadership itself can be affected by the rationales for the consolidation and the ways control is structured. Ultimately, blending practice cultures and finding related synergies are often the key determinants of success, of course, assuming the chosen approach also addresses important legal and related concerns.
Learning Objectives
- Recognize why mergers or other types of consolidation can be alternatives.
- Understand the legal differences in transaction types, and how a “divisional” model works.
- Know the most significant gating and pacing legal/transactional/practical issues and how to address them.
- Anticipate keys to success, particularly due diligence and careful legal-related structuring to address the unique characteristics and cultures of each practice and ongoing leadership needs.