Private medical practices face significantly greater financial and legal risk today than in the past.

Medical practices generally lack pricing power and operate in a regulatory environment that has significant Government influence in pricing, the delivery setting and the ownership arrangements related to the delivery of services. Increasingly, physicians are coming to a conclusion that solo practice, or small group practice, is not as economically desirable as in the past and that forming a larger group may result in a number of financial, operational and lifestyle benefits. In merging practices, it is usually necessary to financially value each party to the merger to determine the relative contribution and ownership of each in the new entity.