As private equity firms and health systems keep buying physician and orthopedic practices, some independent groups are choosing to combine with each other instead of selling.
In September, Winchester, Va.-based Winchester Orthopaedic Associates, a division of Centers for Advanced Orthopaedics, added Bone and Joint Specialists of Winchester. The combined practice operates under the Winchester Orthopaedic Associates name and now has eight orthopedic physicians.
Tom Wise, MD, an orthopedic surgeon at Winchester Orthopaedic Associates, spoke with Becker’s about how the merger came together, the practice’s growth plans and why staying physician-owned matters to the group.
Editor’s note: Responses have been lightly edited for length and clarity.
Question: How did the partnership between the two practices come about?
Dr. Tom Wise: We work in the same town, and we’ve been colleagues at Winchester Medical Center. We’re both partners in a joint venture ASC, and we both became divisions of CAO, so we knew each other very well and respected each other. One practice was growing and the other had projected retirements, so joining together was mutually beneficial. It made a lot of sense from a space standpoint and for serving our community.
Q: What are the combined practice’s long-term goals?
TW: We really want to grow our physician numbers. We’d like a 10- to 12-physician practice in the two buildings we own. We’re at about eight right now, so we have some recruiting to do. Before, we didn’t have enough space to add people. Now we’re able to add people, so it’s a good growth formula for us. We think we have a good product and a good practice, and the combination strengthens that.
We also want to add subspecialties and service lines. We’re pretty well covered, but there are a few areas, like foot and ankle, that we need to add. We’re in a position now where we can do that.
Q: Healthcare is consolidating quickly, especially in orthopedics. Why is it important for practices to stay physician-owned and physician-led?
TW: For me, the physician-patient relationship is paramount to the sound practice of medicine and orthopedics. Physician-owned practices can prioritize that relationship, which ultimately lets us optimize outcomes and quality. When larger consolidated influences come in, like big health systems and private equity, I think they can hurt that relationship. Keeping control of it is one of the big things physician-owned practices bring.
Q: What does a group like CAO offer independent practices and surgeons?
TW: We see CAO as an umbrella. It lets us stay independent locally and run our day-to-day business the way we want. But it also makes us part of a bigger group, so we have negotiating power, which is very important today. It gives us a lot of back-office help with technology, billing and collections. That’s been the big advantage for us. The key thing, and something I think CAO does well, is that it lets us run our practice every day the way we think is best.
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