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Merging primary care practices with MSOs.

B Slocum1

  • 1Premier Medical Group, Atlanta, GA 30309, USA.

Medical Group Management Journal
|October 4, 1997
PubMed
Summary
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Primary care group practices should merge to meet managed care demands, but high costs are a barrier. Utilizing a management service organization can help pool resources, though personal and financial burdens remain significant.

Area of Science:

  • Healthcare Management
  • Health Services Research
  • Primary Care

Background:

  • Managed care organizations increasingly demand community-wide access from primary care providers.
  • Mergers among primary care group practices are a strategy to meet these demands.
  • High start-up costs, potentially reaching $1 million, present a significant barrier to practice mergers.

Purpose of the Study:

  • To explore strategies for facilitating primary care practice mergers.
  • To identify methods for mitigating the financial and organizational challenges associated with practice consolidation.
  • To assess the role of management service organizations in supporting practice mergers.

Main Methods:

  • The study discusses the strategic use of management service organizations (MSOs).

Related Experiment Videos

  • It highlights the pooling of resources and talent within a common organizational structure.
  • The analysis considers the financial and personal implications for participating practices.

    • Main Results:

    • Management service organizations can alleviate some merger-related difficulties by consolidating resources.
    • Pooling resources through an MSO can streamline the process of creating large-scale access.
    • Despite potential benefits, significant personal and financial burdens associated with mergers persist.

    Conclusions:

    • Mergers are necessary for primary care practices to achieve community-wide access required by managed care.
    • Management service organizations offer a viable model for resource pooling to reduce merger complexities.
    • Practices must carefully consider and plan for the substantial personal and financial burdens involved in mergers.