Impending Death of Hospitals

Retain the Right to Repurchase Your Practice


You decided to sell your medical group to a large national group or to the hospital.

If you’ve been paying attention to my blog posts, you know that I strongly believe that the creation of large players in healthcare, especially large hospital-centric players, is making the industry far more fragile, far more prone to fail and to fail big. With size comes complexity and little, if any true economies of scale. When, not if, the economic squeeze is put on these entities, they will explode like a supernova, throwing hundreds if not thousands of physicians economically down the drain.

So, before boarding the Titanic medical group, make sure that you pack a lifeboat: negotiate to retain the right to repurchase your practice.

When the time comes, you may not want to repurchase it – there may be no value in it. But having the right to do so places you at a tremendous advantage in terms of controlling some of the downside.

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