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Our
Plan of Action Begins with Delta's Feasibility Process
Results You Can Expect from the
Feasibility Process
This process provides information necessary to make an informed decision
on whether to move forward with the merger. It does not cost a lot to get
started, yet it answers many critical questions. -- as detailed below.
Delta remains involved in conjunction with each practice's manager and
staff to complete the operational implementation. We also remain involved
with the chosen legal counsel to facilitate their translation of
governance decisions into legal language.
Purpose and Vision
- What is the purpose of the Group?
- What strategic opportunities exist for
the physicians in a group vs. staying in independent practice?
- What legal requirements have to be met
to meet the definition of a group practice?
- What alternatives to merger exist, and
what are the pros and cons of each?
Practice Financial Analysis
Confidential analysis of each participating practice, benchmarking:
- Practice revenue, overhead and staffing
- Billings, collections and reimbursement
- Asset valuation
We use these analyses to develop a
"baseline proforma" to which we overlay the financial impact of
the Strategic Opportunities, below, to quantify the impact the group will
have on each participating physician.
Strategic Opportunities
- We will examine the strategic
opportunities identified including:
- What (if any) ancillary opportunities
exist? What do they cost? What profit will they generate?
- What are reimbursement trends in the
area and will a larger group impact them? What will that impact be?
- What other threats or opportunities
exist for the new group and what are their strategic and financial
impact?
Governance
We will help you determine, without the premature distraction of detail
legal language, how the group will be structured and make decisions
including:
- How much autonomy can be maintained in
existing practices?
- What will be the composition of the
Board?
- How much power will it have?
- How will physicians buy-in and buy-out?
- When will supermajority votes be
required?
Operational Issues
- What impact will the new group have on
day-to-day operations?
- What operational efficiencies are
available, if any?
- What services will be centralized?
- Do any of the participating groups have
existing hardware and software suitable for a management information
systems (MIS) platform for the new group? If not, what alternatives
exist and what do they cost?
- What will it cost to create the
infrastructure necessary to support a group this size?
Income Distribution
How will the new group divide income, and what impact will the income
distribution plan have on the participating practices and individual
physicians?
- How will revenue and overhead be
divided?
- How will existing and new ancillary
service profits be shared?
- How will existing incomes be impacted by
the group in the short-term? Long-term?
Next Steps
The process continues with operational implementation.
For
more information on our experience and
services, including references and fee estimates -- or to arrange a site
visit to discuss your specific situation, please contact Randy
Bauman or Daryl Demonbreun
at 800 467-3310 or email.
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