Practice Mergers & Acquisitions

Practice Mergers & Acquisitions 2017-05-30T08:20:49+00:00

The practice landscape is changing and remaining independent is becoming more challenging. There are more options that are becoming available to nephrology practices. As a nephrologist, you need to consider your personal and professional goals and how they align with the various options you are contemplating. Contact NPS today if you are considering a practice merger or acquisitions. We offer a wide variety of services that can help nephrology practices in this changing landscape.

Mark Hovermann, Director, Special Projects at Nephrology Practice Solutions

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Nephrology Practice Solutions team member Mark can help you navigate practice mergers and acquisitions

If you have ever thought about selling your practice or merging with another, you know there are a lot of things to be considered. The merger of two nephrology practices or acquisition of a practice involves many unforeseen factors. It’s not just about the numbers or best practices. Sometimes personalities, management styles and governance are more significant than you might think.

A large amount of preparation and evaluation is needed before a merger or acquisition can take place. For example, in a merger you will want to have a valuation of both practices done. Not all practices value things the same way, so having the same company perform the valuation and of both practices helps make sure you are comparing apples to apples.

A list of items must be reviewed and resolved prior to any merger or acquisition. NPS has the experience and resources to help you. Having an experienced team leading the process can keep things moving along and help you identify discrepancies and differences. The process can be overwhelming, and having a third party manage it means you can focus making the important decisions while not disrupting the quality of care you provide your patients.

Here are some common considerations with a merger or acquisition:

  • What will this merger do for your practice?
  • What accountant will you use?
  • Which insurance broker?
  • What pension administrator will you use?
  • Will there be any overlap in staffing?
  • Will there be any inefficiencies in overhead?
  • How will billing be managed?
  • Will the merger of clinical skills allow the new practice to expand services and increase revenue?
  • Will this improve the group’s strength in the market?
  • What are the effects of pre-existing relationships, Stark compliance and conflicts of interest?
  • What are the legal and tax concerns?

Nephrology Practice Solutions offers a full range of services and expertise to help you with a practice merger or acquisition. NPS currently owns and operates nephrology practices, offering employment opportunities or complete buy-outs. We welcome serious inquiries. Any decisions are made in alignment with our business strategies. To see a list of our employment opportunities please go to Recruiting & Employment.

Whether you are joining, merging with, or even acquiring a practice, it is very much like dating. You have compatible personalities and common interests; however, getting to the altar can take a bit of navigation and negotiation. Without the right help you could expend a lot of financial effort without closing the deal.

Common Questions

Your accountant is your accountant. You need additional advisers. For example, you need a valuation done by a profession who has experience with medical practices. Although your accountant helps manage your finances, he or she may not be familiar with the laws and regulations that govern medical practices.
Traditional value is based on hard assets such as equipment, facilities, supplies, patient records (not value of the information but the files themselves). Cash is anything left over after expenses, including the physicians compensation. Accounts receivable (A/R) is money due for professional services.
There are several independent valuation firms and accountants that can assist with valuation. The timing of the valuation will depend on the availability of your practice’s information as well as the valuation experts’ team.
The continued changes in healthcare and Accountable Care Organizations are moving toward a more consolidated healthcare system. Practices are concerned about maintaining market share and relevance in the market. In tandem, health systems are worried about having enough physician resources and, on the other side of the spectrum, private practices are continuing to see declining reimbursements and increasing operating expenses.
When you want buy a house, you call a real estate agent. When your car needs a repair, you go to a mechanic. When you need help with your kidney practice’s business, you need a Nephrology business specialist. Nephrology Practice Solutions has the expertise, resources and experience for any situation, including a merger or acquisition. As a subsidiary of DaVita Healthcare Partners, we have been part of the renal community in both patient care, physician services and the business of nephrology.

Nephrology Practice Solutions provides nephrologist employment opportunities in select markets. NPS is actively exploring various affiliation models with nephrologists, including acquisitions of physician practices. Acquisitions are generally structured as asset purchases and are evaluated individually based on all facts and circumstances. If you are considering a sale of your practice and would like to explore options with NPS, please contact practicesolutions@davita.com.