What Otolaryngologists Should Consider Before Merging Their Practices

These types of exit plans are difficult to administer from a business prospective, because returning to the pre-merger status quo often involves untangling a complex web. Great care and realistic expectations must be taken if the parties wish to include an unwind clause in the merger agreement.

Other Key Items

Other items important to address are employee benefit plans (typically one of the practices’ plans survives), participating or nonparticipating status with Medicare and other payers, malpractice insurance, prospective buy-ins (what a new physician to the group must contribute in order to become an owner), Stark law issues (Medicare and Medicaid patient referrals to a facility in which the physician has a financial interest), and antitrust concerns.

This article highlights some, but not all, of the key issues that need to be addressed in a medical practice merger. A medical practice merger can be a rewarding endeavor for physicians and practices if crafted carefully and thoughtfully with the right business partners on both sides of the table.

Steven Harris, Esq. is a nationally recognized healthcare attorney and a member of the law firm McDonald Hopkins, LLC. He may be reached at sharris@mcdonaldhopinks.com.