Trend WaTch:Physician Practice acquisitions

Tracking Which Physician PracTices hosPiTals are acquiring

2TREND WATCH: PHYSICIAN PRACTICE ACQUISITIONTRACkINg wHICH PHYSICIAN PRACTICES HOSPITAlS ARE ACQUIRINg

Are hospitals actively acquiring physician practices? If so, which specialties?

In this report, we share the findings of Jackson Healthcare’s first national study of hospital practice acquisitions.

Key takeaways:

®® Nearly half the hospitals surveyed are actively involved in physician practice acquisitions

®® Family practice and internal medicine are the primary targets

®® Hospitals acquire practices primarily for competitive positioning or through physician inquiries

introduction

3TREND WATCH: PHYSICIAN PRACTICE ACQUISITIONTRACkINg wHICH PHYSICIAN PRACTICES HOSPITAlS ARE ACQUIRINg

This survey was conducted via online and telephone surveys with hospital executives from November 1st through December 15th, 2012.

A total of 118 participants completed the survey. Online respondents were self-selected with 68 completing the survey. Fifty participants completed the telephone survey conducted by Survey Sampling International.

The error range for this survey at the 95th percent confidence level is nine percent.

Methodology

4TREND WATCH: PHYSICIAN PRACTICE ACQUISITIONTRACkINg wHICH PHYSICIAN PRACTICES HOSPITAlS ARE ACQUIRINg

52%

56%

48%

44%

are hosPitals acquiring Physician

Practices?

Planned Acquisitions in 2013(n=119)

Yes

No

Actual Acquisitions in 2012(n=118)

5TREND WATCH: PHYSICIAN PRACTICE ACQUISITIONTRACkINg wHICH PHYSICIAN PRACTICES HOSPITAlS ARE ACQUIRINg

2012 acquisitionsby sPecialty

(actual)

SpecialtyFamily PracticeInternal Medicine, GeneralObstetrics/GynecologyCardiologyPrimary CareGeneral SurgeryUrologyHospitalist & RheumatologyGastroenterology, Nurse Practitioner, Oncology, Orthopedic Surgery, Otolaryngology, Pediatrics, General

Emergency Medicine, Endocrinology, Diabetes & Metabolism, Neurology

Neurosurgery, Physical Medicine & Rehabilitation, Psychiatry (Adult), Pulmonary Medicine

Allergy & Immunology, Cardiothoracic Surgery, Infectious Diseases, Maternal & Fetal Medicine, Nephrology, Occupational Medicine, Pathology, Pediatrics, Subspecialty, Radiation Oncology, Radiology, Vascular Surgery

(n=50)54%26%24%18%16%12%10%8%*

6%*

4%*

4%*

2%*

*The percentage represents each specialty individually, not as a group. For example, Gastroenterology=6%, Nurse Practitioner=6%, etc.

6TREND WATCH: PHYSICIAN PRACTICE ACQUISITIONTRACkINg wHICH PHYSICIAN PRACTICES HOSPITAlS ARE ACQUIRINg

2013 acquisitionsby sPecialty

(Planned)

SpecialtyNone/Not Planning to AcquireFamily PracticeInternal Medicine, GeneralPrimary CareCardiology, Orthopedic SurgeryGastroenterology, General Surgery, UrologyObstetrics/Gynecology, OncologyOtolaryngologyNeurology, Nurse Practitioner, Pulmonary Medicine

Ambulatory Care, Hospitalist, Infectious Disease, Pediatrics, General

Cardiothoracic Surgery, Neurosurgery, Rheumatology, Endocrinology, Diabetes and Metabolism, Geriatric Medicine, Orthopedic (non-surgical), Pain Medicine, Radiation Oncology, Trauma, Vascular Surgery

Anesthesiology, Bariatrics, Emergency Medicine, Ophthalmology, Plastic Surgery, Psychiatry (Adult)

Colon & Rectal Surgery, Critical Care Medicine, Dermatology, Hematology, Maternal and Fetal Medicine, Nephrology, Occupational Medicine, Podiatry, Radiology, Sleep Medicine, Sports Medicine

(n=119)48%31%

22%*13%

10%*8%*7%*6%5%*

4%*

3%*

2%*

1%*

*The percentage represents each listed specialty individually, not as a group. For example, Cardiology=10% and Orthopedic Surgery=10%.

7TREND WATCH: PHYSICIAN PRACTICE ACQUISITIONTRACkINg wHICH PHYSICIAN PRACTICES HOSPITAlS ARE ACQUIRINg

reasons for Physician Practice

acquisition

ReasonPhysicians approach hospital/seek to sell their practices

Build a competitive advantagePart of a physician recruitment strategyMaintain a competitive advantageAccountable Care Organization formationImprove patient safety

(n=69)

70%

58%57%55%30%28%

8TREND WATCH: PHYSICIAN PRACTICE ACQUISITIONTRACkINg wHICH PHYSICIAN PRACTICES HOSPITAlS ARE ACQUIRINg

geograPhic distribution of

resPondents

RegionMidwestSoutheastMiddle Atlantic SouthwestMountainPacificNew England

AreaRuralSuburbanUrban

(n=108)28%28%14%9%8%8%5%

(n=110)58%26%16%

9TREND WATCH: PHYSICIAN PRACTICE ACQUISITIONTRACkINg wHICH PHYSICIAN PRACTICES HOSPITAlS ARE ACQUIRINg

resPondent statistics

Bed Size25 or less26-150150-300300+

Respondent TitleCEOAdministratorPhysician Recruiter / Recruitment ManagerCOODirectorPresidentVPDirector Medical Affairs / Provider RelationsBusiness DevelopmentOther (Coordinator, HR, Associate Dean)

(n=110)9%

52%16%23%

(n=110)25%17%9%8%5%3%3%3%2%3%

Trend Watch: Physician Practice Acquisition by Jackson Healthcare, LLC is licensed under a

Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

More Jackson healthcare researchHere are other national research reports released in 2012:

A Tough Time for Physicians2012 Medical Practice & Attitude Report

Vital Signs 2012A National Nursing Attitudes & Outlook Report

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