Transactions 201: Key Considerations for Successful Physician Practice Employment
Wednesday, June 06, 2012 | 10:00 am - 11:30 am PT
Given the urgency of employing key physician groups, it is easy to fall into the trap of quickly structuring and executing an agreement in order to get the deal done. For the long-term success of the partnership, however, it is important to think critically about deal terms to ensure that they are appropriately structured to meet the needs of both parties. While many physicians (and hospitals) view employment as a way to shore up a floundering group, in order for the relationship to be lasting, it must also be financially viable, support the strategic objectives of both parties, and be able to hold up to regulatory scrutiny. Both fair market value (FMV) and commercial reasonableness considerations must be taken into account when evaluating financial terms. In this session, we will explore key tenets of a successful transaction, including criteria for selecting groups for employment, compensation structure, management and governance considerations, and valuation of the practice.
Specific learning objectives:
- Understand how to objectively and strategically evaluate a group for acquisition.
- Evaluate key considerations for compensation planning.
- Determine the appropriate management and governance structure for the group.
- Consider the implications of other key deal terms.
- Learn the key premises supporting practice valuations.
- Understand the importance of FMV and commercial reasonableness standards.
Featured presenters for this session:
Manfred Steiner, Managing Director & Principal, Brown Gibbons Lang & Company
Manfred Steiner is a managing director and principal with Brown Gibbons Lang & Company and leads their Healthcare Transaction Advisory Services segment. Manfred has extensive experience providing financial and valuation consulting services in a myriad of healthcare sectors. He performs valuations for mergers and acquisitions, fairness opinions and bankruptcies, and serves as a financial consultant to healthcare companies interested in establishing values for acquisitions and divestitures. Manfred has consulted healthcare facilities with exploring options to expand market share. Additionally, he has served as financial advisor to numerous public and private healthcare companies on a broad range of financial issues including financial and third party compliant valuation opinions on the acquired assets. He received a master of business administration degree from University of Chicago Graduate School of Business and a bachelor of science degree, cum laude, in Finance and Economics from Babson College.
Sue Anderson, Senior Manager, ECG
Sue Anderson is a senior manager in ECG’s healthcare practice. Her area of focus is cardiac services, particularly cardiac service line development, cardiology practice acquisitions, strategic planning, and hospital/physician affiliations. Of note, she has assisted in structuring employment agreements with a large number of cardiologists nationwide in the past 3 years. Sue also leads the firm’s Cardiovascular Services Affinity Group, which is responsible for developing thought leadership in cardiac services. She spearheaded the development of the CV service line strategy and management book published by HealthLeaders Media in 2010. Sue holds a master of business administration degree from the UCLA Anderson School of Management and bachelor’s degrees in English and finance from the University of Richmond.
Sean Hartzell, Senior Manager, ECG
Sean Hartzell is a senior manager in ECG’s healthcare practice. He has more than 10 years of experience in healthcare planning and operations. His experience includes strategic capital planning, business planning and feasibility assessments, financial management and planning, and joint venture development and syndication. Sean is currently assisting numerous hospitals and physician groups across the nation merge and integrate. He received a master of business administration degree from the Darden Graduate School of Business at the University of Virginia and a bachelor of science degree in operations research and industrial engineering from Cornell University.
Moderator for this session:
Kevin Kennedy, Principal, ECG
These sessions are complimentary to our clients, industry colleagues, and other interested parties. ECG reserves the right to deny access to those individuals who may pose a conflict of interest to ECG.
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