Merger. A response to increasing competition.

Abstract

Two group practices in Wisconsin, the East Madison Clinic and the Dean Clinic, chose the path of merger to meet the demands of the competitive healthcare environment. The key-issues which had to be addressed before the merger could take place are presented, including: redesign of the earnings distribution formula for the groups, determination of quality assurance mechanisms for the new and larger organization, the effect on administration, considerations in announcing the merger to the public, and many more. Given the unique set of circumstances surrounding the two groups, merger has proven to be a very successful venture and has led to the realization of multiple benefits for the new organization.