business
Practice management firms snap up physician groups
■ The companies continue to acquire practices that provide care in hospitals and other inpatient facilities. Now more doctors are initiating the deals.
By Victoria Stagg Elliott — Posted Jan. 12, 2011
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Physicians who own hospital-based practices are finding that publicly traded practice management companies are more than willing purchasers of their businesses.
"You will continue to see acquisition activity," said Adam Singer, MD, chair and CEO of IPC The Hospitalist Company in North Hollywood, Calif. "We are actually having groups call us, although we do have an outreach program. These groups are out there, and they are seeking help."
IPC acquired 14 practices in 2010 and eight in 2009. Most are hospitalist practices, but those that provide care in nursing homes and assisted-living facilities are also of interest.
"We want to have all the facilities covered during an episode of care starting in the hospital and the other steps, such as rehab or a skilled nursing facility, before patients go home," Dr. Singer said.
Mednax Inc., a practice management company in Fort Lauderdale, Fla., bought 14 hospital-based physician practices in 2010 and 11 in 2009.
After a practice is purchased by Mednax, physicians are employed by an affiliated professional organization. Those bought by IPC are employees of either wholly-owned subsidiaries or affiliated professional organizations. These are separate legal entities comprised of corporations, limited liability companies and limited partnerships. (See correction)
These companies are not buying primary care or other outpatient practices at this time.
"Physicians are trained to provide patient care, but, at the end of the day, they are running a business that is more and more complex," said Bob Kneeley, vice president of investor relations at Mednax. "They are seeking ways to focus more on patient care."
Some recent transactions:
- On Dec. 29, 2010, IPC announced the purchase of three-physician Desert Pediatric Hospitalists, based in Mesa, Ariz.
- On Dec. 28, 2010, IPC said it bought Overland Park, Kan.-based Hospital Inpatient Management Services, which provides services to 140,000 patients annually in Kansas City-area hospitals.
- On Dec. 20, 2010, the Pediatrix division of Mednax purchased the three-physician Neonatology Associates in Kingsport, Tenn. Physicians with the practice also provide care in Virginia and Kentucky.
- On Dec. 14, 2010, Pediatrix bought UltraHealthCare, a six-physician pediatric hospitalist practice in San Antonio.
- On Dec. 1, 2010, IPC announced the acquisition of Senior Care of Colorado in Aurora, which provides medical services to more than 200 nursing homes and assisted-living facilities in the Denver area.
- On Nov. 19, 2010, IPC bought Hospitalists of West Michigan, a group of a dozen physicians in Grand Rapids.