“The Future of Physician Practices” – Danielle Bangs, Principal
Topics
- Context – Competition for physicians & providers is steeper than ever, with traditional and non-traditional strategic and financial buyers all looking to capitalize on the value held within the physician/provider space.
- Touch on both primary care and specialty
- Who are the players?
- New entrant and “aggregator” players – Village MD, Privia, Cano, Oak Street, Agilon, Chen Med, One Medical
- Profile them/characterize into the different categories
- Specialty roll ups – Talk to some of the MSO structure specialty platforms – connect with rich on this
- Established, mega pay-vidors – Optum, Humana
- Traditional strategic buyers (health systems)
- New entrant and “aggregator” players – Village MD, Privia, Cano, Oak Street, Agilon, Chen Med, One Medical
- How do the acquisition and physician aggregation strategies differ across these players? – From a buyer perspective, it’s critical to understand the motivations, priorities, and must-haves of those you’re competing against. For physicians and providers, understanding how these different players see your value and what to expect in terms of offer structure, key terms and post-transaction dynamics can help to target consideration of potential offers, align priorities and objectives (e.g., up front economic return vs. ongoing economic incentive, ability to retain involvement in operations, etc.) and tailor the value-proposition being communicated.
- Future market scenarios – which approaches will dominate? (e.g., Innovator/Value driven; Hospital Employment focused; Payer Controlled)
- Compete or partner? Understanding the deal priorities and terms will help if the goal is to compete. But, alternatively, another strategy may be to partner (i.e., with a “new entrant” aggregator like Privia) to jointly aggregate doctors and/or optimize performance, like Privia does with some health systems, instead of competing.
- Partner to aggregate – Privia, Village MD, etc.
- Partner to optimize – Lumeris, Upstream, etc.