Practice buyout: structuring the right deal

Hospitals and physician practice management companies are making offers to many group practices. It's important for group practice managers to know what to look for if a buy-out deal is offered. First, make sure the proposed partner will invest in front-line medicine and has stable management. Secondary considerations include: making sure buyer and seller goals align, accurately projecting capital needs and who will pay for them, guarding against provider overcapacity, clearly delineating parameters for control and limiting bureaucracy.