Orthopedic consolidation is accelerating, and one digital health CEO pinpointed six markets that could be ripe for growth.
Scott LaRoque, CEO and founder of MPowerHealth, shared his outlook for consolidation with Becker's.
Editor's note: Responses were lightly edited for clarity and length
Question: Which region(s) do you think will see a practice consolidation boom in the next five years?
Scott LaRoque: Historically, independent orthopedic physicians have been able to resist consolidation by leaning into ownership and operation of ASCs, hospitals, physical therapy, imaging and DME. However, that is quickly changing as orthopedic practice consolidation has picked up speed over the past year across the country. Between the pandemic and the national market push to value-based payment models, physician-owned orthopedic practices have faced and continue to face immense pressure to increase efficiencies as well as adopt high-cost technology infrastructure required to participate in risk-bearing payment models.
For those who do want to maintain their independence, clinical integration provides a nice alternative to consolidation, specifically in markets like Texas, Ohio, Pennsylvania, Oklahoma, Louisiana and Florida. Clinical integration has great appeal in that it can provide access to technology infrastructure for risk-bearing payment models, improved patient acquisition channels and the ability to leverage shared management expertise.