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Together Women’s Health Continues Chicago Expansion, Affiliates with Women’s Health Consulting, Representing the Third Affiliation in Illinois →
Become a Partner Practice
TWH Continues Chicago Expansion, Affiliates with Women’s Health Consulting →
Together Women’s Health has been named to the 2023 Inc. 5000 list of fastest growing companies in America!
Become a Partner Practice
As an OB/GYN practice owner, you've poured your heart and soul into building a successful business providing exceptional patient care. When the time comes to consider partnering with a larger group, your role in this decision is crucial. It's important to have a clear understanding of the process and the key factors that will impact your decision and shape a successful partnership.
Let's explore five essential considerations that every OB/GYN practice owner should evaluate before embarking on the partnership journey. By taking the time to understand the investor landscape, evaluate cultural fit, prepare for the integration process, engage your associate physicians, and familiarize yourself with financial metrics like EBITDA, you can make an informed decision that sets your practice up for long-term success.
1.Dig Deeper into Potential Investors
When exploring potential partners, it is crucial to examine the track record and experience of each company's private equity investor and their experience in the healthcare space. Ask about their history of investing in physician specialty platforms and their understanding of the unique challenges and opportunities for OB/GYN practices. This will help you gauge their ability to support your practice's growth and success.
Next, gain clarity on the company's governance structure, including the composition of the Board of Directors and the level of physician representation. It is important to understand how the private equity firm interacts with the company you are considering partnering with. The private equity firm's track record in the physician practice space and the involvement of physicians on their board are telling signs of the company's continued success and ability to achieve a strong return on your investment as a physician shareholder.
By conducting thorough due diligence, you can identify a partner who brings financial resources and shares your vision for the future of your practice. The right partner will understand your unique needs and work alongside you to achieve your long-term objectives.
2.Evaluate Cultural Fit and Shared Vision
A successful partnership relies on finding a buyer whose culture and vision align with your practice. To evaluate cultural fit, consider factors such as the company's mission and values, its approach to patient care, and its management style. Take the time to get to know the executive and medical leadership teams. Building a strong rapport with these individuals is crucial, as they will significantly influence the future direction of your practice.
Seek opportunities to connect with physicians who have already partnered with the company. Their first-hand experiences and insights can provide valuable information about a potential partnership. If you don't feel a strong connection or shared vision with a potential partner, don't hesitate to continue your search for a partner that better aligns with your practice's culture and values.
3.The Beginning of a Thriving Partnership: Smooth Integration of Your Practice
The success of a new partnership hinges on identifying the right partner and ensuring a smooth integration. It's crucial to understand a new partner's ability to integrate your team effectively. Some groups prioritize acquiring many practices, while others focus on building a sustainable business with satisfied physicians and staff. Before deciding, seek insights from physicians and their practice managers who have partnered with the group, as their experiences can provide valuable information about the integration process and long-term expectations.
To assess the new partner's integration process, consider the following:
- Inquire about their integration team, timeline, and approach
- Evaluate how they handle transitioning vendor accounts, PTO, and healthcare benefits
- Clear, comprehensive answers indicate successful past integrations, while vague responses may be a warning sign
- Understand what the post-integration phase entails, as some groups value smooth integration more than others
Integration is the foundation for a new partnership and is critical to staff satisfaction and a successful beginning that can be built upon. A poorly executed integration can lead to turnover, dissatisfaction, and frustration for the entire team. However, with the right partner, you can enter the partnership with a clear, realistic understanding of long-term expectations, ensuring your practice's successful transition and a thriving future backed by the support and guidance of your new partner.
4.Involve Your Associate Physicians
Your associate physicians are key contributors to your practice's success, and their buy-in is crucial when considering a partnership. Be transparent and involve them early in the process, addressing any concerns or questions they may have.
If previous discussions about partnership or ownership with your associate physicians have occurred, ensure these are factored into the transaction. Consider offering financial incentives or upside potential to align their interests with the partnership and foster a positive work environment.
5.Understand the Power of EBITDA
When evaluating a potential partnership, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the key financial metric that drives valuation. EBITDA represents your practice's operating performance and is a measure of its profitability. It's crucial to understand how EBITDA is calculated and the factors that impact it, such as owner's compensation, rent expenses, one-time or non-recurring expenses, and benefit costs.
Collaborate closely with your accountant, financial advisor, and attorney to ensure you understand your practice's financial health. Together, thoroughly review your practice's financials and identify opportunities to optimize EBITDA. The more knowledge you have about this critical metric, the better positioned you'll be to negotiate a favorable deal.
At a Glance
Partnering is a significant decision that requires careful planning. To position your practice for a successful partnership, you must evaluate potential investors, assess cultural fit, prepare for integration, engage associate physicians, and understand EBITDA. The right partner will recognize your practice's value and share your dedication to exceptional patient care. With a strong foundation and shared vision, you can confidently move forward, ensuring long-term success.
Partnership Opportunities
Schedule a consultation with Together Women's Health to discuss your practice's unique needs and explore partnership opportunities.
Become a Partner
