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Related Experiment Videos

Physician practice management companies: should physicians be scared?

A E Scott-Rotter1, J A Brown

  • 1Gateway Institute, Elizabeth, NJ 07201, USA.

The Journal of Medical Practice Management : MPM
|January 6, 2000
PubMed
Summary

Physician practice management companies (PPMCs) offer administrative support but carry risks. Physicians should carefully vet PPMCs, prioritizing those with expertise, financial stability, and respect for professional autonomy.

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Area of Science:

  • Health Policy
  • Healthcare Management
  • Medical Economics

Background:

  • Physician practice management companies (PPMCs) emerged as entities managing nonclinical aspects of medical practices.
  • PPMCs gained significant Wall Street favor until a market downturn in early 1998.

Purpose of the Study:

  • To examine the unmet promises and flawed assumptions associated with PPMCs.
  • To provide physicians with criteria and questions for evaluating potential PPMC partnerships.

Main Methods:

  • Analysis of the PPMC market landscape and the impact of the MedPartners-PhyCor merger collapse.
  • Development of a framework for physician due diligence regarding PPMCs.

Main Results:

  • The collapse of major PPMC mergers led to increased physician skepticism towards these organizations.

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  • Key criteria for physician evaluation of PPMCs include demonstrated expertise, financial stability, and physician satisfaction.
  • Conclusions:

    • Physicians should exercise caution when considering PPMCs, focusing on due diligence.
    • Smaller, single-specialty PPMCs may offer better prospects for profitability and clinical control.