By Diwakar Sinha, CEO, Polaris Healthcare Partners
Note: The $15 million and $5 million figures are illustrative. Whether you’re a $25 million, $50 million—or any-size—group, this playbook scales with you. Polaris Healthcare supports practices at every revenue level.
In today’s fast-evolving healthcare landscape, mid-sized DSOs and MSOs—spanning plastic surgery, dermatology, urgent care, dentistry, behavioral health, and more—stand at a pivotal crossroads. With footprints from 5 to 25 locations, these groups are no longer niche practices. They’re emerging powerhouses that can reshape care delivery, strengthen negotiating clout, and keep clinical excellence at their core.
Strategic consolidation—merging with 1–3 location practices in your market—unlocks scale and synergy. It expands access, enhances provider autonomy, and turbocharges growth in both fee-for-service and payer-driven specialties. This article weaves a narrative vision with a step-by-step, human-centered blueprint for leaders ready to chart their own course—whether they choose to remain independent or prepare for a future private equity partnership.
Why Strategic Consolidation Matters
If you’re a $15 million group merging with a $5 million practice, Day One puts you at $20 million in combined revenue. But the real story lives in the upside—and that playbook works just as powerfully for a $25 million group merging with a $10 million practice, or a $50 million group partnering with smaller clinics.
- Expanded geographic reach brings care closer to patients and boosts brand visibility.
- A provider-driven culture retains clinical autonomy and keeps patient care front and center.
- Enhanced insurance leverage unlocks stronger reimbursement and contract terms.
- Scale in aesthetic and dental specialties fuels investment in premium services and technology.
These benefits aren’t theoretical—they translate into better care, stronger teams, and more rewarding practices for physicians.
A New Vision: Doctor-Led, Capital-Enabled
Not every physician group wants to sell to private equity—and they shouldn’t have to choose between independence and growth. At Polaris Healthcare, we provide:
- Growth capital that preserves leadership control and cultural identity.
- Advisory expertise to structure deals, model synergies, and negotiate terms.
- A clear path for those who later opt for a PE transaction, ensuring you maximize value on your own timeline.
Whether your goal is to stay independent and scale organically, or to position for a future exit, you get the resources and roadmap to make it happen—no matter your current revenue size.
A Human-Centered Acquisition Blueprint
Here’s how a $15 million DSO/MSO can thoughtfully merge with a $5 million practice—and turn that $20 million baseline into $25 million or even $30 million through synergy capture. Swap in your own numbers—this blueprint flexes up and down with you.
- Define Your North Star: Shared Vision and Values
- Target Selection and Due Diligence
- Financial Modeling: From $20 M to Exponential Growth
- Humanizing the Integration
- Shareholder Alignment and Transparent Governance
- Roadmap to Execution
- Measuring Success and Reinvesting for Growth
Bringing It All Together
Merging any-size group with complementary practices can feel daunting. But by weaving human connection into every step—aligning visions, engaging teams, and celebrating shared wins—you build far more than scale. You forge a patient-focused, provider-led organization that outperforms in quality, culture, and profitability.
No matter your starting size—$15 million, $25 million, $50 million, or beyond—or your endgame—full independence, physician-led consolidation, or a future private equity exit—Polaris Healthcare has the capital, advisory expertise, and field-tested playbook to guide every step. Let’s build something greater together.
At Polaris Healthcare Partners, our mission is to turn complexity into opportunity and ambition into legacy. Contact us to explore more.
