The Business of Medicine: Hospital-Based, Academic, Private Practice – Learning How To Succeed (2021 Annual Meeting)-The Business of Medicine: Hospital-Based, Academic, Private Practice

The Business of Medicine: Hospital-Based, Academic, Private Practice - Learning How To Succeed-Cole

Video Transcription

Video Summary

The speaker discusses challenges and strategies in orthopedic practice management, emphasizing the importance of balancing clinical work with business operations. Most orthopedic surgeons remain in private practice, facing stagnant or declining reimbursements, making ancillary services and vertical integration crucial for sustainability. Outpatient shifts and practice consolidations into larger groups provide benefits, including negotiating leverage and implementing value-based care models involving risk-sharing and outcomes accountability. Compensation models vary, often combining salary, bonuses, and shared revenues from ancillaries like ASCs, physical therapy, and imaging. Fair distribution of revenue and maintaining group cohesion, especially for senior partners, are important. Ancillary services notably boost practice revenue, though some areas like in-office pharmacies have limited success. Private equity offers prospects for tax-efficient capital but carries complexities and may not suit all groups. Alternatively, the speaker’s group pursues aggregation—forming alliances while maintaining brand identity to improve negotiating power and growth potential. Overall, embracing business acumen and revising organizational structures are vital for thriving in evolving orthopedic care.

Asset Caption

Dr. Brian Cole

Keywords

orthopedic practice management

ancillary services

vertical integration

value-based care

practice consolidation

private equity in healthcare