Midlands Health Network practices now have the opportunity to use the existing value of their business to increase practice size and share ownership with Pinnacle Incorporated.
Known as equity exchange, a group of small practices can merge into one business, with practice owners swapping the value of their existing business for a share of the new business.
David Oldershaw, general manager for sustainability at Midlands Health Network Ltd, says 10 practices across the network have already shown interest in growing their business.
"Each practice's situation is different and so are their reasons for wanting to merge with other smaller practices. Some of the 10 practices we are talking to are sole practitioners or GPs in small practices who are concerned about making a profit from their practice when the time comes to sell their business, leave or retire. While other practices have shown interest in sharing the burden of managing a business by spreading the financial risk," says David.
"Generally speaking, bigger businesses are less difficult to exit and size can also help attract new recruits. Managing cover for leave, sickness and other absences also becomes easier. The increased size of the business will help with integrating new services and adopting new models of care," he adds.
By partnering with Pinnacle Incorporated, primary care is being kept in the hands of New Zealanders.
Although equity exchange is about the value of the business and not physical buildings or land, Midlands Health Network Limited can help look at options for the sale of property where needed.
Equity exchange is one way that practice owners can better manage their businesses. To learn more about equity exchange and other options, refer to the brochure below and email firstname.lastname@example.org.