Herndon, Va.-based Commonwealth Orthopaedics and Richmond-based OrthoVirginia announced a merger, effective Jan. 1, 2015.
Here are five things to know about the merger:
1. The new practice will become the largest orthopedic group in Virginia, with 82 physicians, 21 office locations, an MRI facility as well as numerous physical and occupational therapy clinics and outpatient surgery centers.
2. Commonwealth Orthopaedics will change its name to OrthoVirginia, and the two organizations will share information on trends such as meaningful use, bundled payments, ICD-10 and the physician quality reporting system, said Mark Madden, chairman of Commonwealth Orthopaedics.
3. However, day-to-day operations at the two organizations will not change. Medical and administrative staff will continue to work from their respective locations.
4. Commonwealth Orthopedics was established in 1994 and offers care in a wide array of orthopedic specialties, such as spine, total joint replacement, foot and ankle surgery, hand surgery and sports medicine. OrthoVirginia, formed in 1960, provides the full spectrum of orthopedic services as well as physician therapy services. There were more than 60,000 orthopedic therapy sessions at OrthoVirginia last year.
5. The transition will be seamless for patients. "This is good news for everyone involved — especially our patients," said David Miller, MD, president of OrthoVirginia. "It will improve the delivery of orthopedic care in Virginia, provide a stronger network of high quality orthopedic physicians, and position both organizations for future success in a rapidly changing healthcare environment."
The mergers and acquisitions activity among orthopedic group practices has seen an uptick in recent months, with several large groups joining forces. In August, Phoenix-based The CORE Institute signed a partnership agreement with providers at the Sun City-based Arizona Neurological Institute. The CORE Institute will formally employ Arizona Neurological Institute physicians and staff, adding to The CORE Institute's 12 facilities.
In July, OrthoGeorgia and Forsyth Street Orthopaedics, both located in Macon, Ga., merged. The combined practice includes 26 orthopedic and spine specialists, 20 physician assistants and nurse practitioners, as well as therapists, nurses and technicians.
Typically, M&A activity allows healthcare organizations wield greater negotiating power with payers and helps them grow resources for improved care delivery. This is especially true as higher costs are required as practices begin implementing electronic medical records, quality reporting and prepare for ICD-10. With physicians increasingly moving to hospital employment, 'strength in numbers' maybe the philosophy practices take to remain independent in the future.
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