New contractual affiliations can salvage unsuccessful practice acquisitions
Bernick, D.M.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 52(12): 63-64
1998
ISSN/ISBN: 0735-0732 PMID: 10338800 Document Number: 495106
Many healthcare organizations become disillusioned with their acquired medical practices within a few years of purchase because of major financial, operational, and political problems with their new networks. As postacquisition financial losses increase and relationships with physicians under contract decline, many healthcare organizations seek an escape from the situation. Three options for dealing with a failing acquisitions program are to do nothing until the physicians' employment contract expires, give the practice back to the physicians, or negotiate a contractual settlement in which the practice is returned to the physicians in exchange for a new contractual commitment to the healthcare organization. The third option offers the greatest potential for salvaging the arrangement and preserving the physician-organization relationship.