At Perception Health, we believe our TEAM platform is a powerful source for market data and identifying growth opportunities around physician alignment, clinical practices, and revenue growth. However, coalescing these data attributes can drive a much more robust analysis. Last year, one of our clients successfully used the TEAM platform to explore a potential acquisition in a new market and quantified the business case for doing so. As providers pick up steam after a tumultuous 2020, all signs point to a much busier 2021 in the M&A space. As such, I wanted to highlight how the TEAM platform can be used to drive strategy for potential acquisitions and set up a potential acquisition for success.
Primary Care Providers are the “quarterbacks of care” in any given healthcare market and have tremendous impact on a patient’s choice for specialized care should it be required. Thus, when entering a new market, it makes sense to understand local PCP’s preference for specialists in major common service lines (Orthopedics, Gastroenterology, Urology, etc). By creating a community of primary care physicians in the desired market, the client was able to quickly identify the high volume primary care providers, and which specialists they preferred.
Further expanding this analysis, the client combined local specialists in key service lines communities to understand how each type of specialist distributed patients to hospitals in the market as well as their PCP base. The client also utilized our Affiliation functionality to quickly identify members of physician groups in the market to analyze. Understanding the downstream patient volume from the specialists in the market allowed them to help rank potential alignment or acquisition opportunities with specialist groups in the market to grow volume to their targeted Hospital in targeted service lines.
After identifying high performing physician groups for alignment/acquisitions, the client investigated the group’s clinical practices at a CPT/HCPCS level using the Clinical Report and the Clinical Dashboard. From there, they were able to understand what procedures the physicians were performing, the relative volumes of those procedures, and where they were being performed. Armed with this information in addition to their referral data, the client easily quantified an ROI for potential group practice acquisitions in the market and developed a strategic plan to move valuable procedures to their facilities.
By strategically combining the datasets available in the TEAM platform, our clients can perform holistic analyses of new markets, quantify an ROI, and hit the ground running with a growth strategy for new acquisitions. With increased potential M&A activity on the horizon in 2021, make sure you have the tools to guide your ROI calculations and strategy for these crucial business decisions.
1)https://www.hfma.org/topics/finance-and-business-strategy/article/hospital-m-a-activity-remained-low-in-q1-2021-but-could-increase.html
