Transition Consultants - Medical Practice Sales, Valuation, Financing

The Office of Inspector General (OIG) posted an advisory opinion regarding an online coordination service for health care professionals. The Requestor, a company which provides web-based services to physicians, designed this service to facilitate the exchange of information between health care professionals. The Requestor informed that this coordination service is only available to its clients (e.g. physicians) who purchase the EHR service as well. However, any health care professional (providers, suppliers, etc.) may be included in the network free of charge. Clients who utilize both the coordination and EHR services would receive a small monthly discount.

The Office of the Inspector General (OIG) recently released an advisory opinion (No. 11-17) regarding a laboratory services management company (the "Requestor") proposing to contract with physicians. Under the Proposed Arrangement, the Requestor would provide allergy testing and immunotherapy lab services to primary care physicians on an as-needed basis. The Requestor would be responsible for personnel, equipment, marketing and other factors pertaining to these services. Furthermore, the Requestor would review the physicians' patient files to identify those suitable for its services.

Many buyers are concerned about over-paying for "goodwill". Much of this stems from the fact that they are not always confident in their ability, whether clinical or business management skills, to produce the same results as the Seller.

One of the great myths surrounding a practice transition is that up to half of the patients will leave the practice after the transition. However, a thoroughly planned transition can provide much better results. Keep in mind that an average dental practice loses about 10-12% of its patients each year through normal attrition. Jobs and insurance providers can change, or the patients may simply relocate. Therefore, it is recommended that ANY dental practice counteract this attrition by maintaining an effective marketing and recall program throughout the course of the year. This should be a TOP priority during the critical first year after a purchase.

HHS announces new incentives for providers to work together through Accountable Care Organizations when caring for Medicare beneficiaries

The Department of Health and Human Services (HHS) recently released final regulations regarding Accountable Care Organizations (ACOs). These additional changes were based on over 1,300 comments received after the spring proposal of the rule. ACOs are designed to increase the efficiency of care delivery and payment, which in effect would save federal healthcare dollars and improve patient care. This offers another option for healthcare providers to collaborate in the care of Medicare beneficiaries. However, unlike managed care plans, Medicare patients will not be required to see a restricted group of physicians.

Transition Consultants helped us to sell our primary care practice in 2 weeks. We had the urgency to relocate and did not have the luxury of time. This is when I got help from David and his company in bringing us a valid buyer who could understand and take over our practice within two weeks. David and Transition Consultants worked hard on and after hours and weekends to help us make this transition happen.

The Department of Health and Human Services, Office of the Inspector General (OIG), recently released an advisory opinion pertaining to a pathology lab management arrangement (the "Proposed Arrangement"). Advisory Opinion No. 11-15 examines a proposal by a company (the "Requestor") wishing to contract with a Medicare-certified pathology lab. According to the Proposed Arrangement, the Requestor would furnish all the lab's operational needs, including equipment, non-physician personnel, medical billing and marketing. The lab, in return, would pay the Requestor a usage fee based on a fixed percentage of the lab's annual income, which may include reimbursements from Medicare and state health care programs.

A recent advisory opinion was released from the Department of Health and Human Services, Office of Inspector General (OIG), pertaining co-management. Co-management in vision care is the sharing of a patient's care between a surgeon and primary eye care professional. Advisory Opinion No. 11-14 pertains to a proposal from an ophthalmology group (the "Requestor") regarding co-management of cataract surgery patients with independent optometrists. Per the proposal, the independent optometrists would separately charge the beneficiaries for services related to premium refractive intraocular lenses that are not covered by the Medicare program. The group was inquiring whether the arrangement would violate section 1128(b)(7) of the Social Security Act (the "Act"), or the civil monetary penalty provision at section 1128A(a)(7) of the Act, as those sections relate to section 1128B(b) of the Act, the Federal anti-kickback statute.

Optometry Practice Management and Review

Optometric practice owners deal with a confluence of factors which impact the operational efficiency and financial performance of their businesses. With looming changes in the healthcare environment, optometrists in the private practice setting need to be mindful of strategies to stay competitive. The majority of optometry practice owners are responsible for both management as well as clinical care. As they may consider selling their practice at some point, they should be cognizant of operational issues, trends in Optometry, and other macro factors affecting the marketability and valuation of optometry practices.

Christina Rodriguez: In this segment we are talking to Christopher Majdi, with Medical Practice Appraisers and Transition Consultants.

Q: What is your background and qualification?

A: I am a Certified Healthcare Business Consultant and hold a Master of Science Degree in Healthcare Administration. I have been involved in the valuation, sale and financing of healthcare practices for 10 years.

Dermatology Reimbursement
Reimbursement trends are vital to the profitable operation of dermatology practices nationwide. With looming changes in the healthcare system anticipated in the near future, the reimbursement of certain dermatology services and procedures could be potentially cut. The value of a dermatology practice is largely dependent on a consistent revenue stream, making reimbursement and revenue cycle management especially important for potential sellers. Additionally, those physicians contemplating buying a dermatology practice should be equally aware of future trends to ensure ongoing success of practices which they purchase.