Radiology facilities are witnessing a positive growth over the past few years, however for quite a while now, mergers and acquisitions between practices have been a point of talk in radiology specialty. Despite the fact that there has not been a noteworthy increment in blended practices, it’s a plausibility that still concerns numerous.
If your facility is considering the choice between merger and acquisition, here are some points that may prove too advantageous to conjoin.
Four reasons to consider a MERGER OR ACQUISITION
Listed below are four critical reasons to consider a merger or and acquisition that might be valuable for your radiology facility.
- The Economies of Scale
The measure of your practice decides how profitable you are.
“A merger and acquisition could give the extra advantage of economies of scale, which is the cost advantage that emerges by an expansion in the level of production and decreasing the cost of operation.”
Economies of scale enable you to build your capacities of offering subspecialty administrations and upgrade your business offerings. Your radiology practice can likewise reinforce its revenue cycle management and promoting activities.
- Expand the Geographic Reach
Being a part of merger and acquisition will enable your practice to help more patients. Your work on covering a greater geographic territory could possibly be monetarily valuable, as the industry moves from fee-for-service to a focus on populace wellbeing. However, as you geographical reach extends so dies the billing and coding needs. In this scenario hiring a specialized Radiology billing and coding company will make it easy for you to charge every procedure correctly while you concentrate on patient treatments.
As an individual radiology practitioner, your capacity to negotiate patient fees is restricted. As a part of a bigger group, you can have more control over cost negotiations with various medical groups and doctor’s facilities.
In the event that your radiology facility turns out to be a part of bigger groups of medical entrepreneurs, a bigger corporate association, or a national venture, you will have a more noteworthy chance of securing your current clinic contracts or replacing other radiology groups.
How can Radiologist enter Merger and Acquisitions?
Before taking part in a merger and acquisition, there are numerous factors to consider. Addressing these issues can help radiologist decide if a merger and acquisition is right for your radiology practice, and help you how to approach and handle it head on.
Determine the impact of new work structure
Have a vision in mind as to how your new organization will look like and how you will run it. Define what type of leadership you want to have, and how it will affect the future relationships with your current referring physicians and hospital partners. Also, determine how the structuring will affect your abilities to make future business decisions that too based on facts and figures. The best way to design the structure is to have all voices in your group be heard without it preventing future decisions that could benefit your radiology practice.
Each radiology practice has varied expectations on productivity, employees, referring physicians, and so on.
Before your merger and acquisition can be successful, you must discuss with all potential buyers or partners on how these situations can be handled going forward, and agree on a set plan.
Make your merger and acquisition run easily with outsourced Radiology billing and coding services or hire specialty billers that know what to code and when to code in an M/A situations. This will not just streamline your workflow prerequisite but will amplify the income cycle as well.