Greater size brings strength to the market. Greater access. Greater negotiating strength. Greater financial strength. Greater operational efficiencies. Greater ability to share financial risk. Greater volume of services.
Bigger organizations get more attention, better reimbursement.
So what can independent therapy practice owners do? Well . . . Their medical specialist counterparts like orthopedists and GI docs typically MERGE their businesses to consolidate and get bigger. So you could do the same. You can find other practice owners and combine your businesses. That means dealing with a number of control issues and bringing together multiple cultures under a single ownership umbrella. It’s also a LOT of work and very costly with legal, accounting, and consulting fees.
Here’s another option. A number of independent therapy practice owners have decided to SELL to large organizations like ATI, Select Medical Group, local hospital systems, and others. That’s probably somewhat easier, and you definitely get much bigger. But you give up your business and a vast majority, if not all, control. And YOUR Culture becomes THEIR Culture.
Merging or Selling TIGHTLY CONSOLIDATE your practice and can give real market advantage – assuming the organization brings not only size, but measurable value.
Or you can go ‘looser’ with fewer changes. You can ‘consolidate’ as a LOOSELY KNIT network or Independent Practice Association (IPA). Networks and IPAs bring some market strength if they are organized around value delivery, but they don’t simplify processes or reduce costs for health plans.
Here’s a great option. How about forming or joining an MSO – management services organization. Therapy Partners has been in business as an MSO since 1999 and brings its members – 11 practices, 23 clinics, 80+ therapists – great value – centralized billing and payment processing, better contracts with health plans, risk sharing arrangements, exceptional FOTO outcomes, and practice management services. TPI’s MSO brings MARKET STRENGTH to our member practices because we BRING VALUE to health plans and other powerful decision makers.
HOW? . . . Simplification. We have one person negotiate with plans on behalf of all the members. One contact. One contract. We contract with ALL health plans for ALL members under a single Tax ID Number. All members use the same billing system, and Therapy Partners submits claims and processes payments for each practice. Simplification reduces health plan costs. Value. Predictability. All TPI member clinics use FOTO, measure their outcomes, and manage their care – predictable costs, predictable outcomes. Predictability is critical to insurance companies. Risk Sharing Ability. With our huge data base of FOTO outcomes and efficient care management, TPI has engaged in a value-based, risk sharing contracts with a large health plan since 2010. TPI clinics deliver The Triple Aim – measurable quality, an exceptional patient experience, and lower total cost of care.
And best of all . . . TPI practice owners continue to own their practices.
We are looking to grow our TPI membership in Minnesota and Wisconsin AND expand into other states.
Interested in the value being part of an MSO brings your practice?
Give me a call or shoot me a text.