React to this article in the Discussion Forum. Solo practitioners and smaller group practices are finding it increasingly difficult to compete in this environment. In response to changing times, physicians, attorneys and consultants have been developing new models for delivering health care that are in tune with the changing environment. This article will first discuss the advantages of practice mergers, and then will point out the disadvantages to such mergers and the traps to avoid in pursuing them.
Advantages Increasing size is the biggest advantage of a practice merger.
Increased size strengthens the group practice's negotiating position with hospitals, employers, insurance companies, managed care organizations and other third party payors. This may enable a physician to participate with a third party payor who had not even considered contracting with the physician or smaller group prior to the practice merger. The merged practice will be able to offer more full service care and greater continuity of care for patients. In today's environment, with patient satisfaction being key, providing more to patients is what the business of medicine is all about. The resources that a larger group possesses may allow the physicians within the merged group to attain goals and advance their practices beyond what would have been attainable prior to the merger.