Speaking to an overflow, standing-room-only crowd of physicians and healthcare industry leaders at our law firm's Lake Success office last week, Joel M. Greenberg, Esq., a senior partner at the Firm, urged physicians not to delay in responding decisively to the pressures being put upon them by the government and insurance industry to merge or consolidate their practices into larger group structures. Greenberg stated, "Never before in the 25 years since I've been practicing health law has the private practice marketplace been in such turmoil. Solo practitioners and small group practices are simply unable to compete with the large hospital systems and "mega-groups" that are beginning to dominate the healthcare delivery system. In this environment, size really does matter . . .clearly, bigger is better."

Greenberg went on to say that our law firm, which has one of the largest health law practices in New York State, has been troubled by a continuing and growing trend that became noticeable within the past 6-12 months. It was at that time that many of the solo practitioners and small group practices which our firm represents started to be recruited aggressively by the large hospital systems and "mega-groups" operating throughout Long Island and the greater New York area. Greenberg pointed out that due to the intense financial pressure which has been put on small physician practices by shrinking insurance reimbursements and increasing governmental regulations, more and more doctors have been seeking our Firm's help on how to survive in this increasingly difficult environment. For the first time, even bankruptcy is being discussed more frequently as a possible option for physicians and small group practices that are falling behind in their ability to meet their weekly payrolls.

State and local medical society leaders who were in attendance at last Wednesday's meeting confirmed what Greenberg identified as "the dramatic change that is taking place right before our very eyes." They joined him in urging that physicians become proactive and "think outside the box" before it's too late. "Now is the time to take steps to join together to form larger, more cost-effective single or multi-specialty groups that have the negotiating power with insurance companies to demand higher reimbursement rates such as those offered to the large hospital systems and "mega-groups" with whom these smaller practices must compete." Greenberg went on to explain that merging or consolidating small group practices into larger ones is the best way for physicians to increase their revenues and decrease their expenses. He indicated that our Firm's many relationships in the healthcare community put it in a unique position to facilitate professional introductions, which is a key element in this process.

The program also addressed other possible ways that physicians in private practice could improve their competitiveness without sacrificing their autonomy and independence.

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Abrams Fensterman is committed to continuing its efforts on behalf of healthcare professionals: (1) to promote new organizational structures; (2) to identify cost-saving opportunities; and (3) to facilitate new professional relationships. Doing so should enable private practitioners to compete more effectively in today's increasingly challenging environment.

Toward this end, the Firm will be hosting another Networking Reception For Physicians on Thursday, May 13^th from 6:30pm - 8:30pm. It will be held at the offices of Merrill Lynch, 200 Park Avenue, 13^th Floor, New York City. A light dinner will be served. There is no charge to attend, but please R.S.V.P. as soon as possible.

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For more information on our firm's initiative to help private practitioners survive in today's difficult market, or to R.S.V.P. to our upcoming event on May 13^th, please contact any of the following individuals:

Joel M. Greenberg, Esq.
Scott Einiger, Esq.
Patrick Formato, Esq.