Optimizing Existing Infrastructure with Physician Practice Group M&A Transactions
With 338,899 currently active physician group practices in the U.S., as reported by Definitive Healthcare¹, it’s inevitable that a large number of mergers and acquisitions will continue to occur for them to remain competitive and to expand their services. For many physician owners, however, maintaining some level of autonomy can be a deal breaker. According to Kaufman Hall’s year-end analysis of 2023 Healthcare Merger & Acquisition Transactions², one of the anticipated trends in 2024 will be “New Partnership Models”, driven by factors such as a desire to retain independence.
Since ReMedics’ founding in 2017, our outsourced Revenue Cycle Management (RCM) Services were designed to optimize existing infrastructure, while driving increased productivity and profitability for merging practice groups. By efficiently managing payment and reconciliation processes for co-mingled remittances (billed under the same Tax-ID/EIN), we are uniquely positioned to support multi-submitter, single-receiver business models that utilize independent EMR/PM System vendors.
With our co-shared RCM solutions, ReMedics helps to facilitate group aggregation by allowing for practice autonomy and less investment in new IT expenditures. EDI Clearinghouses and Banking Partners can also remain distinct to each practice group, business unit or division. The result is a more efficient and economical M&A path to success.
Parsing and Reconciling Co-Mingled Transactions for Enhanced Posting and Reconciliation Processes
ReMedics remittance management helps to streamline payment posting processes when multiple groups and practice management systems exist within a larger organization. We are able to do this by leveraging proprietary technology and business logic that automates the parsing and reconciliation of co-mingled transactions for each practice. ERAs are parsed and re-balanced to virtually eliminate posting issues due to invalid information. Our solutions capture all denial codes, zero pays, comments, and other transactions. We are also able to convert Paper EOBs to ERAs for automated posting.
With our services, bank deposits are matched, verified, and reconciled at both the corporate and individual business unit levels — before remits are provided to each practice group. Staff only have to deal with exception errors when required. This allows them to focus on more relevant revenue cycle tasks, such as billing and collections.
Maintaining Practice Group Autonomy with ReMedics
Leveraging a single cash management platform called ReSolve®, provided by our business partner and sister company RCMS LLC, ReMedics can manage all of your remittance allocation/distribution, bank reconciliation and funds transfer processes. This also allows for an easier transition when a new group is added to the organization.
Contact ReMedics today to learn how we can help with your merger & acquisition plans while maintaining practice group autonomy.
Citations
¹Definitive Healthcare: Healthcare Insights | Number of Physician Group Practices by State. Published January 5th, 2024
²KaufmanHall Insights: Hospital and Health System M&A in Review: Financial Pressures Emerge as Key Driver in 2023