Speaker: Seek practice partnership opportunities with a strategy, for a reason
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NEWPORT BEACH, Calif. — The entire orthopedic practice should be involved in decisions about strategic consolidation opportunities, regardless of the type of transaction being considered, a presenter said.
At the Interdisciplinary Conference on Orthopedic Value-Based Care, David J. Jacofsky, MD, a health care executive, said, “Always start with strategy. Where do we want to be in 5 years?”
He recommended gaining consensus from the entire practice, possibly taking a vote to decide on the best option among consolidation, private equity-type investments, hospital employment or a strategic partnership.
“Consolidation and private equity-type investments may make sense for certain physician groups. Hospital employment may make sense for certain individuals or other types of groups. Make sure to understand the reason you’re looking for a partner and determine what partner makes the most sense based on that reason,” said Jacofsky, who is chair and CEO of Healthcare Outcomes Performance Company (HOPCo).
Once an orthopedic group knows where it wants to be in 5 to 10 years, it should determine which solution of those that Jacofsky discussed can help the group achieve its goals “in the most effective way. Nothing in any of these deals — any of the four of them — is ever free,” he said.
“Think about sustainability and think about strategy. I think that will help you make the right decision,” Jacofsky said.
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Jacofsky DJ. The future of orthopedics: Practice consolidation, private equity & the employed orthopedist. Presented at: Interdisciplinary Conference on Orthopedic Value-Based Care; April 29-30, 2022; Newport Beach, Calif.
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