Overview
During this webinar, our speakers examined the physician practice management (PPM) macroeconomic and microeconomic trends, policy updates influencing the PPM sector, and current legal and regulatory frameworks impacting the PPM sector. Top takeaways included:
- The PPM market is showing signs of improvement, with a focus on larger transactions and category leaders. While M&A volume is slightly down, there has been a high volume of larger transactions in the 500 million to 2 billion range. The trend of larger deal sizes and focus on category leaders is expected to continue.
- Operational value creation is crucial for PPMs to navigate current challenges and achieve sustainable growth. Four key levers for driving operational value creation for PPMs include growth, clinical operations, revenue excellence, and operational efficiency. Holistically analyzing all of these levers is essential for addressing the complex operational challenges faced by PPMs.
- Federal and state regulatory changes pose both risks and opportunities for PPMs. Federal policy priorities are focused on budget reconciliation, which will likely result in spending cuts that will impact Medicaid. At the state level, regulatory activity is focused on corporate practice of medicine prohibitions, state transaction notification laws, and physician employment agreements and noncompetes. Understanding and navigating these regulatory changes will be critical for PPMs to succeed in the coming year.
