The Future of Physician Groups – Prospering as the Healthcare Industry Transforms
This river cruise provides strategic information for physician groups facing the challenges ahead in the healthcare industry. You can prepare yourself and your practice for these changes while enjoying a river cruise. Call us to Call us for more details at (561) 488-2075.
A Five-part In Person Series Geared Towards Educating Physicians and Physician Groups
In light of the COVID-19 pandemic and its ensuing aftermath, more physicians than ever are considering and entering into partnerships with larger organizations. This five-part in person series will guide leaders of independent medical groups through exploring various options in order to strategically position themselves for long-term success.
Session 1: Assessing Strategic Options in the Wake of the Pandemic
- With the pandemic largely behind us but still feeling the impact of the changes it ushered in, physicians need to be assessing various strategic options for the future of their medical practices.
- This includes exploring possible mergers and partnerships with national healthcare companies, private equity-backed practice platforms, hospitals and health systems, and also regional mega-groups (both multi-specialty and single-specialty).
- Physicians these days sometimes lose sight that their medical practices are very valuable assets (part of their personal wealth) that they built through hard work over many years, and without a transaction, they may never be able to “monetize” the value of this asset.
- Although none of these options may be right for your group, you should be fully informed about and consider them all before deciding to “stay the course.”
Session 2: Getting Your House in Order to Prepare for a Strategic Transaction
- Before commencing a major transaction for your medical group, there are very important preparations you need to make, including:
- confirming full alignment with your partners (co-owners),
- understanding your group’s corporate agreements, and
- verify that your practice complies with important legal requirements, such as the privacy and security mandates of HIPAA, the Stark and Anti-kickback laws, HR policies and procedures, and your billing, coding, and documentation practices.
- If you pursue a major transaction, these preparatory efforts will help substantiate a maximum purchase price (and avoid de-valuation) and also result in a more straightforward and cost-effective transaction process.
- Even if you don’t pursue a transaction, these efforts will reduce potential future exposures and liabilities that could be very substantial.
Session 3: The Process of Undergoing a Strategic Medical Practice Transaction
- Most physicians have never engaged in a major transaction, such as a sale, restructuring, or merger of their medical practice.
- It is important for physicians to understand each of the crucial stages of such a transaction and different inflection points for purposes of maximizing negotiations avoiding and pitfalls.
- The key transaction phases that will be discussed include:
- initial explorations, discussions, and negotiations with potential suitors,
- negotiating and signing a letter of intent (LOI) with the one selected partner, which entails “exclusivity” prohibiting further discussions with other suitors,
- due diligence, which is comprehensive and extremely time-consuming on your staff, distracting from their regular duties, and otherwise expensive,
- negotiating and signing “definitive” transaction agreements, which includes extensive disclosure schedules on all aspects of the practice, and
- closing of the transaction.
Session 4: Strategic Ventures for Medical Practices that Remain Independent
- Medical practices that remain independent should still be considering various arrangements to strategically position themselves in the competitive marketplace and be profitable.
- Some of these potential arrangements that will be discussed include:
- Joint ventures with hospitals or national companies for certain ancillary services, such as ASCs, imaging centers, urgent care, and care management services,
- Co-management agreements with hospitals to jointly manage certain departments, divisions, or service lines of the hospital,
- Clinically integrated networks (CINs) and accountable care organizations (ACOs) for purposes of value-based contracting with major payors in the region,
- Management services organizations (MSOs) and group purchasing organizations (GPOs) to benefit from economies of scale in purchasing goods, supplies, insurance coverages, and administrative services (e.g., billing, collection, HR, IT, etc.), and
- Forming “super-groups” with other practices in the same specialty or on a multi-specialty basis.
Session 5: Back to the Basics – “Easy Stuff” to Avoid Substantial Medical Practice Liabilities and Exposures
- Physicians who are part owners of medical practices can easily get caught up in various matters in the rush of each day, such as the needs of their many patients, negotiating managed care contracts, navigating payment disputes, recruiting new doctors, dealing with hospital issues, and efforts improve the referrals and profits of the practice.
- It is easy to lose sight of various important legal issues and risks that they should be dedicating time to each month.
- This session will delve more deeply into major regulatory pitfalls that practices need to avoid -- and proactive compliance initiatives that should be implemented – all with the objective of reducing potential exposures and liabilities that could cause substantial financial harm to a group and potentially be devastating to medical practice.
Vector Medical Group, LLC
Dana Jacoby is a national thought leader across various medical specialties, including urology, gastroenterology, dermatology, oncology, and others. In addition, Dana has experience not only guiding her personal companies through multiple merger and private equity transactions but also has consulted in nearly $1 billion of merger and acquisition deal flow, making her one of the most sought-after healthcare specialists in the country.
Dana’s experience bridges both large corporate healthcare companies as well as individual providers. This has included positions with General Electric Healthcare and Johnson & Johnson, as well as working in the pharmaceutical sector with the Allergan company, where she was tasked with the launch and growth of the drug Botox in Asia. Her work has included project development, market analysis, design implementation, and service delivery in hospitals and health systems in nearly every state in the United States and internationally in Asia, Europe, and Canada.
Ms. Jacoby is a trusted advisor to C-Suite Executives, Boards of Directors, and Physician Leaders. Her expertise is specifically focused on the areas of strategic planning, mergers and acquisitions, private equity and investment banking, alternative payment models, financial management, operational efficiencies, service line development, and process improvement. She has spent thousands of hours improving medical practice, pharmaceutical/device company strategy/planning with a primary focus on product-market development, medical practice management, provider compensation strategies, efficiency metrics, and process improvement.
Dana has also committed to a life practice of philanthropy. Her charity of choice is the international healthcare organization Project C.U.R.E. Founded over 30 years ago in a garage in the mountains of Colorado, Project C.U.R.E. has saved lives and eased suffering by delivering medical relief to people in over 130 countries. She invests her spare time as well as money by traveling to recipient hospitals in the developing world and personally helping to deliver medical supplies and equipment to the people who need it most.
Ms. Jacoby graduated from Louisiana State University, holds a Master of Management from Tulane University, and a Master of Health Systems from the University of Medicine and Dentistry of New Jersey. She is a Wharton Fellow Inductee from Wharton University and the author of several books and numerous articles and white papers. She is regularly a featured keynote speaker, panelist, and moderator.
Dana makes her home in Denver, Colorado. An avid runner, Ms. Jacoby is a Boston Marathon qualifier and has run 68 marathons, one in each of the States in the United States and on each of the continents except for Antarctica.
Gary W. Herschman
One Gateway CenterNewark, NJ 07102
GARY W. HERSCHMAN is a Member of the Firm in the Health Care and Life Sciences practice in the Newark and New York offices of Epstein Becker Green. He serves on the firm’s Board of Directors and also on its National Health Care and Life Sciences Steering Committee. Prior to joining the firm, Mr. Herschman was Co-Chair of the Health Care Practice Group of a large regional law firm.
Mr. Herschman represents a diverse group of health care clients, including health systems, hospitals, nursing homes, long-term care facilities, ambulatory surgery centers, home health companies, private equity, and other investment funds specializing in health care companies, ambulance companies, dialysis companies, imaging centers, DMEPOS companies, large medical groups, specialty care networks, management companies, and other health care businesses.
Mr. Herschman advises and assists health care providers in strategically positioning themselves in the rapidly changing health care marketplace. This includes advising clients in regard to consolidations, affiliations, mergers, and acquisitions, as well as joint ventures, physician alignment, clinically integrated networks, ACOs, MSOs, IPAs, PHOs, and population health contracts. Mr. Herschman also advises health care clients on regulatory compliance (federal and state), Stark, fraud and abuse, corporate compliance, HIPAA, government investigations, and civil and administrative health care litigation.
Mr. Herschman is a frequent speaker at local and national conferences on a variety of cutting-edge health care law issues, with a focus on strategic ventures, hospital consolidations, affiliations and acquisitions, hospital-physician alignment transactions, the formation of ACOs and CINs, regulatory compliance issues (Stark, fraud, and abuse, etc.), major clinical and facility joint ventures, recent government enforcement initiatives, reducing whistleblower exposure, and conducting "Stark" audits of hospital-physician arrangements. He also has authored many articles on current health care law issues published in local and national publications.
In addition, Mr. Herschman serves as Chair of the Fraud & Abuse Practice Group of the American Health Lawyers Association and is a member of the Editorial Boards of Bloomberg Law’s Health Law & Business and Health Care Compliance Association’s Compliance Today.
- The George Washington University Law School(J.D., 1989)
- Order of the Coif
- Editor, The George Washington Law Review
- Lafayette College(B.A., 1986)
- summa cum laude
- Phi Beta Kappa
Hector M. Torres
Healthcare Investment Banking
FocalPoint Partners, LLC
Hector has nearly two decades’ worth of substantive experience providing investment banking and financial advisory services to healthcare organizations and companies nationwide and has completed more than 30 mergers and acquisition (M&A) transactions with a cumulative value in excess of $3.5 billion in the past five years alone. Hector leads the evaluation, structuring, negotiation, and execution of mergers, acquisitions, partnerships, joint ventures, and all other forms of strategic transactions. He also leads projects involving the assessment of valuations, long-range integrated strategic financial plans, fairness opinions, strategic options, growth strategies, and business unit/clinical service line viability.
Summary of Expertise:
Hector brings a tactical perspective to the many strategic partner-ship- and transaction-related issues facing healthcare providers in today’s rapidly evolving market. He is known for fiercely representing his clients’ interests and advocating on their behalf in all forms of M&A and strategic partnership transactions, while continuously remaining aligned with their long-term goals and objectives. His clients include:
- National and large multiregional health systems.
- Academic medical centers.
- Community hospitals and health systems.
- Large physician practices and groups.
- Health insurers.
- Non-acute care providers.
- Capital providers to healthcare entities.
Hector is a licensed attorney in New York State, a member of the American Bar Association, and a member of the New York State Bar Association. He holds numerous licenses with the Financial Industry Regulatory Authority (FINRA), including the Series 7 (GS), Series 63 (AG), and Series 99 (OS) designations.
Hector received his Master of Business Administration in Finance from the Syracuse University Whitman School of Management, his Juris Doctorate from the Syracuse University College of Law, and his Bachelor of Arts in Political Science from the University of Central Florida.
Selected Articles and Speeches
He has authored white papers and numerous articles published in professional journals and presented at various industry and professional events and seminars, including those sponsored by the Medical Group Management Association and Becker’s Healthcare.