ACMPE Article Assessment - Knock, knock... Who’s there? Considerations for when private equity comes for physician acquisitions

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* 1. In this article, the acronym PE refers to:

Professional Equality

Private Equity

Private Establishment

Profit Enhancement

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* 2. Physicians in __________________employment type arrangements represent the highest percentage of entity structures in the United States.

Forecasted earning stream

Corporate entity

Hospital or health system

Private practice

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* 3. Mission alignment, community presence, integrated networks and long-term stability, are all key decision-making factors that should be considered by practices when determining their approach to employment structure options.

True

False

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* 4. The value of a practice is largely derived from their earning stream, which is a function of many factors, including:

The training and skillset of the physicians

Payer agreements and revenue cycle management

Operating cost structure and capital infrastructure

All of the above

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* 5. Medical practices should consider these key factors when considering a PE offer except:

Purchase price and potential offers for comparison

Operational terms

Cost of HIPAA compliance

An evaluation of the PE firm

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* 6. Financial statement normalization is the process of modifying financial statements to exclude non-recurring expenses or revenues.

True

False