Supergroups

[shadesofgrey]

My private practice group has been approached by one of the podiatry supergroups about potentially joining them. Just wondering if any one has any experience with this, either as an associate or partner? It is not a practice arraignment that particularly appeals to me, but I would assume there must be some significant benefit given the increasing number of pods that are joining them.

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[CutsWithFury]

My private practice group has been approached by one of the podiatry supergroups about potentially joining them. Just wondering if any one has any experience with this, either as an associate or partner? It is not a practice arraignment that particularly appeals to me, but I would assume there must be some significant benefit given the increasing number of pods that are joining them.

I don't understand the point of being in a supergroup other than financial support to run the practice. I doubt you will be seeing more patients or receive better compensation

 

[josebiwasabi]

I think if your are a partner/owner it would be advantageous. You could probably get better deals on office supplies, meds, etc. I know the FASMA group has their own lab which keeps that revenue in-house. It would also probably help with cost sharing if you wanted to by an in-office CT, or buy into an imaging center for an MRI, or have greater capital to be able to buy-in or open a surgery center. I would also imagine you could argue for higher reimbursement rates from private insurers. You also have the benefit from easier marketing.

As an associate you probably get no direct benefit. In fact, your position is probably even further down the totem poll. And all those cost savings to the partners will surely equal higher compensation for you right? LOL.

 

[heybrother]

A podiatrist in my area is in a large group. The benefits he touted were:

-better negotiated rates with some payors
-potential discounts on health insurance for the practice
-discounts on supplies
-behind the scenes staff who are responsible for reviewing billing/coding and fighting it out for the group
-Negotiating other forms of practice insurance ie. catastrophic business insurance that everyone chips into
-group owned pathology lab for nail fungus that you can buy shares in

Would an associate benefit? Well, theoretically if insurance rates paid better you could benefit. Course maybe you work for one of those groups that won't tell you your collections.

More realistically - the more podiatrist owners you put in a room talking the more likely there's someone who will tell your owner you deserve to be paid jack crap and that the practice is worth a fortune.

 

[JewOnThis]

My private practice group has been approached by one of the podiatry supergroups about potentially joining them. Just wondering if any one has any experience with this, either as an associate or partner? It is not a practice arraignment that particularly appeals to me, but I would assume there must be some significant benefit given the increasing number of pods that are joining them.

My advice would be to get the hell out of there when that happens. If that group has someone who is/was an elected member of apma or acfas- run even faster.

 

[Feli]

It sorta depends how you are defining 'supergroup.'

If it is a large DPM group (usually them + MBAs + venture capital) buying out multiple local 2, 3, 4, etc doc practices and starting new practices to funnel them all in to shared path, PT, orthotic lab, billing, mgmt, etc... that might be fine for your job quality. They could actually run things better, have a better system, staffing, etc. That is a windfall for the owner/partner(s) in the bought out group, and it is about a wash for associates (but their job quality could go up/down depending how it was beforehand).

If you are talking about the DPM "supergroup" ideas where many private practices try to simply stay largely autonomous yet pool resources (this is the much more common "supergroup"), then they are aiming to try to save on DME, supplies, keep more services in the group (orthotics, path, billing, etc), theoretically do group negotiation with payers, etc as was mentioned. That will be a slight expense for partner(s) and wash for associates at first. In the long term, it will be good or bad for the partners - entirely depends on how well the "supergroup" is run (accountants, billers, supply negotiations, etc). They often kinda start off as big talk and then not much actually happens. Down the line, it could help or hurt the partners, and based on how the partners do and choose to spread the wealth/loss, it could be good/bad for associate(s) too. Nothing happens fast.

 

[shadesofgrey]

Thanks for the input. This is definitely a large DPM group with venture capital, and my compensation is pretty bad as is, so maybe this will be a good thing.

 

[ldsrmdude]

Thanks for the input. This is definitely a large DPM group with venture capital, and my compensation is pretty bad as is, so maybe this will be a good thing.

I don’t have any experience with podiatry supergroups but I was in a crappy contract in private practice. The practice was sold to a hospital system and it was the best thing to happen for me. I got paid on a much better pay scale (my salary doubled overnight) and had clear attainable targets for bonuses. If you’re in a bad situation, I doubt working for the supergroup is worse and it probably is better for you. Good luck with it