Auto logout in seconds.
Continue Logout
Physicians and medical groups are at a pivotal moment — facing both new and familiar challenges. Read on for our team’s biggest insights from 2023 and recommendations for 2024.
Independent medical groups will not survive if they do not grow
Sarah Roller, Managing director, Physician and medical group research
For many years, I’ve believed that independent medical groups have two paths: grow or survive. This year the trends have finally stacked up in such a way that I expect growth to be fundamental to survival. The most significant indicators for me are: (1) Over 45% of physicians will reach retirement age in the next 10 years. (2) With the rise of corporate ownership and private equity funding, new physicians have a range of options outside of the hospital to practice in large, financially stable environments. As this older generation of physicians retire, independent medical groups will need to create organizations that can compete in recruiting new physician talent through offering security, acquiring market share, and winning health plan and employer contracts—all of which is accomplished through scale. The silver lining: This doesn’t have to be done exclusively through mergers and acquisitions; instead, like-minded independent practices can come together through coalitions and partnerships to achieve scale.
One step to take in 2024: Identify one growth strategy (e.g., hiring more physicians, establishing a partnership, adding more patient lives) to pursue this year.
Watch out for: You must be able to both address block-and-tackle priorities (e.g., access, care team redesign) and pursue growth at the same time. Many organizations delay growth ambitions in order to “get their houses in order.” There is no longer time to do that.
Specialty care is the next frontier for Medicare Advantage-driven acquisition and investment
Eliza Dailey, Director, Physician and medical group research
We track medical group acquisition and investment trends year after year. The long-standing trend in specialty care investment has been same specialty roll-ups — largely by private equity groups — to capture efficiencies, grow volumes, and generate fee-for-service (FFS) revenue. And while this FFS-driven activity will march on, we predict that Medicare Advantage (MA) will increasingly motivate specialty care investment going forward, much like we’ve seen in the primary care space. We expect that we will see an uptick in specialty practice acquisition by multispecialty organizations, driven by pressure to deliver value in MA risk arrangements and create senior care ecosystems (and three other drivers we unpack in this publication). Keep an eye on partnership strategies emerging in specialties like oncology, neurology, and nephrology. Did we read the tea lives right? We’ll keep you posted.
One step to take in 2024: Audit and strengthen existing specialist relationships in your market. There will be heighted competition for an already limited supply of specialists.
Watch out for: Don’t run out and recruit more specialists. Employed relationships don’t guarantee physician loyalty. Rely on other engagement strategies instead.
Prioritize medical group integration initiatives based on their impact on both operations and culture
Mahaya Walker, Research consultant, Physician and medical group research
My team spent this year studying medical group integration. During our research, we consistently heard from organizations struggling with integrating their operations. As we dug into these stories we realized: Groups struggle to integrate operationally when they ignore the cultural components of their operational decisions. We recommend that groups evaluate any integration decision based on its impact on both culture and workflow. To start, prioritize initiatives that have a high impact on culture and low impact on physician workflow. This allows groups to build the cultural capital they need to tackle initiatives that cause greater disruption to a physician’s day-to-day.
One step to take in 2024: Assess your pending integration initiatives against their impact on both group culture and physician workflow.
Watch out for: Don’t fall into the trap of conflating good change management after an operational integration decision with prioritization of integration initiatives based on their impact on culture.
Specialty care is the next frontier for Medicare Advantage-driven acquisition and investment
Eliza Dailey, Director, Physician and medical group research
We track medical group acquisition and investment trends year after year. The long-standing trend in specialty care investment has been same specialty roll-ups — largely by private equity groups — to capture efficiencies, grow volumes, and generate fee-for-service (FFS) revenue. And while this FFS-driven activity will march on, we predict that Medicare Advantage (MA) will increasingly motivate specialty care investment going forward, much like we’ve seen in the primary care space. We expect that we will see an uptick in specialty practice acquisition by multispecialty organizations, driven by pressure to deliver value in MA risk arrangements and create senior care ecosystems (and three other drivers we unpack in this publication). Keep an eye on partnership strategies emerging in specialties like oncology, neurology, and nephrology. Did we read the tea lives right? We’ll keep you posted.
One step to take in 2024: Audit and strength existing specialist relationships in your market. There will be heighted competition for an already limited supply of specialists.
Watch out for: Don’t run out and recruit more specialists. Employed relationships don’t guarantee physician loyalty. Rely on other engagement strategies instead.
Prioritize medical group integration initiatives based on their impact on both operations and culture
Mahaya Walker, Research consultant, Physician and medical group research
My team spent this year studying medical group integration. During our research, we consistently heard from organizations struggling with integrating their operations. As we dug into these stories we realized: Groups struggle to integrate operationally when they ignore the cultural components of their operational decisions. We recommend that groups evaluate any integration decision based on its impact on both culture and workflow. To start, prioritize initiatives that have a high impact on culture and low impact on physician workflow. This allows groups to build the cultural capital they need to tackle initiatives that cause greater disruption to a physician’s day-to-day.
One step to take in 2024: Assess your pending integration initiatives against their impact on both group culture and physician workflow.
Watch out for: Don’t fall into the trap of conflating good change management after an operational integration decision with prioritization of integration initiatives based on their impact on culture.
Organizations that prioritize physician integration will retain physician talent
Colleen Wagner, Research analyst, Physician and medical group research
Medical group M&A is on the rise and shows no signs of slowing down. Today the average physician practice size is bigger than it ever has been, and there are more employment options for physicians to choose from. This means it is more important than ever to prioritize medical group integration. When done correctly, integration can improve physician workflow, build a unified culture, and alleviate physician burnout. Organizations that build an integration strategy into their acquisition strategy and bring physicians into the decision-making process will build trust and retain their workforce.
One step to take in 2024: Audit where integration efforts at your organization stopped in the pilot stage. Then do a listening tour of your physicians to understand how to take the next step on these initiatives.
Watch out for: Different specialties, markets, and sites of care have different needs. Make sure your leadership team is hearing from a diverse set of physician perspectives as you integrate.
A clear value proposition on autonomy will enable you to win physician talent
Kara Marlatt, Expert partner
In my role presenting Advisory Board research to physician audiences, I consistently hear that autonomy is what physicians value most in their current roles. Yet balancing physicians’ desire to maintain individual autonomy and the necessity to centralize care models as organizations grow is no easy feat. While organizations cannot always promise blanket autonomy to physicians, the types of autonomy you do provide can be the reason why a physician chooses to work for you versus a competitor in the first place. Unfortunately, most organizations do not have a clear value proposition when it comes to physician autonomy ― but they should! As more employment options become available to physicians, they are increasingly trading on the types of autonomy that organizations provide. Our advice: Don’t hide the ball. Demonstrate where you offer autonomy and be direct about where you don’t.
One step to take in 2024: Survey your landscape of competitors and determine where you win or lose on autonomy, then clearly define your value proposition.
Watch out for: You don’t need to provide every type of autonomy under the sun, but you do need to make sure that your physicians feel heard and supported. If not, they’ll likely become a flight risk.
APPs must underpin your primary care strategy going forward
Sydney Moondra, Senior analyst, Physician and medical group research
Advanced practice providers (APPs) are on track to outnumber physicians in primary care in the US by 2031, with some sources even predicting a surplus of APPs. After crunching the numbers, I believe that oversupply calculations undervalue APP versatility and the autonomous role they can play in primary care. In fact, I’d go as far as to say APPs are no longer optional or supplemental in primary care. Specifically, we’ve identified three ways autonomous APP deployment can solve primary care access challenges: increasing rural access, improving chronic disease management, and testing the viability of new services. Organizations who are not deploying their APPs to solve primary car access challenge are missing out on the value of the one care team role that’s projected to grow.
One step to take in 2024: Assess your current APP primary care workforce to determine whether your APPs are working at top-of-license.
Watch out for: The success of your APP strategy is dependent on communicating the value of APPs to both patients and physicians. Make sure to pair your deployment strategy with patient education to dispel myths around quality or credentials and physician training to emphasize benefits to capacity and workflow.
Don't miss out on the latest Advisory Board insights
Create your free account to access 1 resource, including the latest research and webinars.
Want access without creating an account?
You have 1 free members-only resource remaining this month.
1 free members-only resources remaining
1 free members-only resources remaining
You've reached your limit of free insights
Become a member to access all of Advisory Board's resources, events, and experts
Never miss out on the latest innovative health care content tailored to you.
Benefits include:
Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
You've reached your limit of free insights
Become a member to access all of Advisory Board's resources, events, and experts
Never miss out on the latest innovative health care content tailored to you.
Benefits include:
Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
This content is available through your Curated Research partnership with Advisory Board. Click on ‘view this resource’ to read the full piece
Email ask@advisory.com to learn more
Click on ‘Become a Member’ to learn about the benefits of a Full-Access partnership with Advisory Board
Never miss out on the latest innovative health care content tailored to you.
Benefits Include:
Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
This is for members only. Learn more.
Click on ‘Become a Member’ to learn about the benefits of a Full-Access partnership with Advisory Board
Never miss out on the latest innovative health care content tailored to you.
Benefits Include:
Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
