How to Avoid Mistakes in a Physician Acquisition: Q&A With Chris Gauvin of VMG Health

A hospital can improve physician group acquisitions by understanding key decision points of a physician group and criteria to assess the sale of the practice. An important element of an acquisition is the valuation. The valuation of a physician group begins with an assessment of current operations and assets through information provided by the practice. Ultimately, this provides a base for the valuation firm to understand future operations of the practice. Understanding the valuation process including key decision points will help hospital executives avoid mistakes during the acquisition. Through many circumstances, a physician group has not thought through the entire transaction process, so helping the group understand the post-transaction vision early on in the process is also helpful. If hospital executives can identify and avoid mistakes themselves, they can better guide physicians to avoid mistakes during the valuation. Here Chris Gauvin, manager at VMG Health, discusses areas ripe for mistakes in a physician practice valuation process as well as methods for hospitals to expedite a valuation. Click to continue to the full article.