Gary M. Kirsh, MD, presented “Future Options for Urology Practice Ownership” during the 29th Annual International Prostate Cancer Update on January 25, 2019 in Beaver Creek, Colorado.
How to cite: Kirsh, Gary M. “Future Options for Urology Practice Ownership” January 25, 2019. Accessed Nov 2024. https://dev.grandroundsinurology.com/future-options-for-urology-practice-ownership-2/
Future Options for Urology Practice Ownership – Summary:
Gary M. Kirsh, MD, discusses the challenges that independent urology practices face from complexities in the constantly-evolving healthcare industry. He then describes the benefits of adopting configurations of independent urology groups in which physicians have equity ownership.
Abstract:
Healthcare is changing, and as a result, urologists are asking if they can continue to thrive in their current practice configurations. The healthcare industry has seen changes in reimbursement complexity and opportunity due to the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) and the value-based payment programs it implemented, namely the Merit Based Incentive Payments System (MIPS) and Alternative Payment Models (APMs). This complexity necessitates increasingly sophisticated business models, such as professional, legal, and accounting management.
Whether or not urologists are seeking out new practice ownership opportunities, they often receive offers for these arrangements. While most industries in the United States have consolidated, healthcare remains a fragmented industry. However, according to recent trends in health system mergers, consolidation in the industry has already begun. A 2018 AUA survey demonstrated the consolidation of physicians, as 50% of urologists are currently hospital-employed.
One key action independent practices can take in order to navigate this atmosphere of healthcare changes is to acquire scale. Unfortunately, many practitioners equate scale with a loss of independence and confinement to policies and procedures of a larger structure. Because of this, the urologic community should adopt a new concept of independence in which physicians have equity ownership.
Options for achieving this structure include investor-driven consolidation; or in other words, “private equity,” and “organic” consolidation. Private equity can help to achieve scale, bring outside capital infusion and expertise from the equity partner, as well as obtain liquidity from the initial sale of a portion of a practice. Organic consolidation can also achieve scale, allowing physicians to maintain all decision-making in the practice. Regardless of the method used, the successful urology group of the future will offer meaningful scale while maintaining physician equity ownership.
About the International Prostate Cancer Update
The International Prostate Cancer Update (IPCU) is an annual, multi-day CME conference focused on prostate cancer treatment updates. The conference’s faculty consists of international experts, and the event caters to urologists, medical oncologists, radiation oncologists, and other healthcare professionals. Topics encompass prostate cancer management, from diagnosis to treating advanced and metastatic disease. Dr. Kirsh presented this lecture during the 29th IPCU in 2019. Please visit this page in order to learn more about future IPCU meetings.
ABOUT THE AUTHOR
Gary M. Kirsh, MD, has been President of The Urology Group, headquartered in Cincinnati, Ohio, since 2009. The group operates integrated surgical, imaging, laboratory, radiation, and clinical research services and is the largest provider of urologic care to the Cincinnati/Northern Kentucky/Eastern Indiana metropolitan service region, serving over two million people. Dr. Kirsh earned his medical degree from the University of Chicago Pritzker School of Medicine in 1984. He completed his urology residency at Case Western Reserve University in Cleveland, Ohio, in 1989.
Dr. Kirsh has a long history of involvement in organized urology, urologic health policy, and advocacy. He is a past Chairman of UROPAC (2009-2013), as well as a past-president of the Ohio Urological Society (1998-1999), the American Association of Clinical Urologists (2007-2008), and the North Central Section of the AUA (2015-2016). In 2008, Dr. Kirsh was instrumental in founding LUGPA. Dr. Kirsh has served as Chairman of Political Affairs, Secretary, President-Elect, and President (2014-2016) of LUGPA.
Dr. Kirsh has frequently spoken to urologists across the country about socioeconomic and political issues facing urology. He has provided legislative testimony in support of physicians’ issues at both the state and federal levels.
