3 Tips for Forming a Successful Mega Group

The many financial challenges of remaining independent are all too familiar to private practice physicians. Decreasing reimbursement, increasing costs, navigating ongoing healthcare reform are the top threats to profitability reported in the Practice Profitability Index.

This national survey also revealed that 39% of 5,000+ participating physicians predict eroding profits in the year ahead, and nearly 1 in 4 respondents (24%) say they would consider selling their private medical practice.

However, more than half of physicians want to stay independent, the question is: how? For many practices, banding together as a mega group is the right tactic to boost profits, buck the trend toward hospital employment and remain independent for years to come.

Advantages of Mega Groups

Bringing a diverse group of private practices together under one tax ID number can yield distinct benefits, including:

  • Greater leverage for negotiating contracts with insurance companies
  • Expansion or creation of profitable ancillary services
  • Broader and deeper clinical services for patients

3 Keys to Mega Group Success

However, establishing a mega group practice model is not without its challenges. “The Power of Many: How Physicians Use Technology to Bring a Mega Group to Life” is a free report that outlines detailed strategies to overcome common hurdles, including:

  • Forming a Mega Group around commonalities (core specialties, geography, etc.) to foster collaboration
  • Remaining transparent on all money matters by using modern technology to capture, analyze and share financial data among all practices
  • Choosing clear and effective leadership to set and champion mega group goals.

Lessons Learned & Best Practices Shared

A practice with more than 100 physicians in more than 50 locations, South Florida Medicine formed a successful Mega Group. They credit their success, in part, to technology – “ adopting a modern, cloud-based practice management system to centralize all payment and claims posting, as explained in a HIStalk Practice Q&A with Alyson Tiedeman, Director of Practice Management.

Avoid claim denials, increase revenue and empower your staff

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