In recent years, large orthopedic groups have set their sights on the Midwest. In 2022, only five of the top twenty largest independent orthopedic practices in the US were based out of midwestern states, with many practices favoring East Coast locations. However, orthopedic activity in the Midwest is growing. Since 2017, fourteen major private equity-backed orthopedic groups have popped up (according to the Journal of Orthopaedic Experience & Innovation). Although most of these groups have chosen locations in the South and Northeast, five have settled in the Midwest. These include:
- OrthoAlliance
- Orthopedic Care Partners
- Healthcare Outcomes Performance Company
- Unity MSK
- USOP
Consolidation Options for Orthopedic Practices
Practices of all kinds throughout the medical industry have been experiencing a wave of consolidation in recent years. Smaller practices can merge with larger groups or affiliates, expanding their access to high-end medical technologies and providing more expansive patient care. Smaller orthopedic practices especially have been joining forces with larger ones, a phenomenon spreading to the Midwest. Practices like OrthoMidwest and PELTO Health Partners signed new agreements with smaller practices in 2023, allowing these practices to join a larger organization without selling to private equity. Most independent practices place a high value on their independence. Consolidation gives them the best of both worlds – maintaining their independence in the industry while giving them access to increased funding, cutting-edge technology, and more.
Additional Benefits of Orthopedic Consolidation
As mentioned above, orthopedic consolidation gives smaller practices access to new technologies and greater cost efficiency. Consolidating with a larger practice can help a smaller practice thrive in today’s healthcare environment. Larger practices generally have increased bargaining power, which can be highly beneficial when negotiating with insurance companies. Larger groups also have more frequent access to legal and financial resources, making it easier for smaller practices to navigate complex industry regulations. Consolidation makes smaller practices less likely to get tangled up in compliance issues. The benefits of consolidation extend beyond patient experience and management – providers can often specialize in specific orthopedic subfields, allowing them to provide specific care for patients who need it.
Consolidation as a Transition, Not an Ending
As with any significant change in a practice’s management, it is crucial that those in the industry are aware of the implications of consolidating with a larger orthopedic group. Consolidation is not the end of a smaller practice—it is simply a transition that most often leads to an improved healthcare experience for patients. Orthopedic consolidation in the Midwest is worth following, as smaller practices may find that the shift is exactly what their practice needs.
Orthopedic Practice Guidance from Healthcare Information Services
At HIS, we understand that navigating the endless changes in the healthcare industry can be difficult. We proudly offer our Management Services Organization experience to orthopedic practices throughout the US, taking on your practice’s most significant challenges for orthopedic success. Our services include Ancillary Service Development, Business Development, Executive Recruitment, and more. Our MSO services also include Revenue Cycle Management for orthopedic practices of all sizes. RCM services from HIS empower orthopedic companies to optimize their financial operations and provide an even higher level of care. We want to help your orthopedic practice thrive, no matter where in the country you are located. Contact HIS to speak with one of our industry experts today!