For some, the idea of a practice merger brings doubts and uncertainties. In reality there are many ways that merging two practices can be beneficial to all parties. In many ways a merger allows two businesses to share operating expenses while bringing in more money. It can also help address personnel challenges that a smaller practice can't avoid.
When two practices merge, they often combine locations and equipment into one larger pool. Instead of buying two of every item and paying double in real estate rent, you can often cut those costs drastically. For instance, a newer combined building may cost 25 percent less than two separate smaller buildings. This alone could make the merged practice far more profitable than either practice would ever reach independently.
With a larger pool of patients to choose from, your veterinarians are more likely to be able to specialize in the areas that are best suited to them. Instead of everybody having to manage all cases, you are more likely to have veterinarians with complementary skill sets so one person can focus on surgeries while another focuses on diagnoses. You are also likely to save money on staffing by combining your clerical staff into one body during the practice merger.
In addition to the cost savings and staff changes that you'll enjoy with a practice merger, you're also likely to see an improvement in operations and stability. Both parties to the merger will be brought up to the same level of technology and organization. In this process, there is likely to be a deliberate review of company policies. If the practice is sold in the future, one partner could sell to the other and the day-to-day life of the practice will remain largely unchanged. For those working under your banner, this offers a promise that their job is stable and safe and can help reduce turnover when compared to an average practice sale.
All of these are beneficial factors that come into play when you're considering a practice merger. There are many ways that a merger can improve the overall standing of your practice almost overnight. By sharing resources you'll have more to work with when it comes to providing great service and keeping your team secure. If you are unsure that your practice is ready to sell outright, a merger may be the option you've been searching for.