More and more private practices are looking at merging to provide security, stability and growth. Practice mergers have many pros and cons, but ultimately can be a really positive step forward for many practices and take a huge weight off the shoulders of their owners. We are looking at the pros and cons of practice merging, with the challenges and benefits you will face should you choose to do so.
TACKLING PATIENT CONCERNS
If you decide to merge with other practices, it’s important to understand and acknowledge your current patients. As soon as you get the go ahead and agree terms, it is a great idea to keep your patients in the loop as much as possible. Emailing your patients is a simple yet effective way to ensure that your patients anxieties calm, and being open to answer questions is a must.
Poor planning and organisation can be extremely detrimental to your practice and the whole merging process. Ensuring you employ or utilise members of staff and people that you can trust to assist you with this huge project can really help to alleviate pressures and reassure you that the planning and preparation for the merge is running smoothly.
A merger can have a positive effect on the growth of your practice and can definitely break the ceiling on the limitations you may have experienced as a lone practice. Growth is the goal for many practices that are considering mergers, this doesn’t only mean making a profit, merging practices can enable you to exploit opportunities that you may not have had before.
INITIAL INCOME DECLINE
Something that will need to be considered massively when initiating a merger, is the possible decline of income and profit in the early stages. When you merge with another practice, equity becomes 50/50 in traditional cases. This means that you will be sharing your practices profit with the other practice, which in the early stages of a merger can decrease your practice profit and income.
Overall, practice mergers can be the making of a practice if you do the right research, remain organised and prepare your team, your patients and yourself for the big change.