Transaction Services

Paragon Transaction Services

While Paragon Advisory services focuses on traditional consulting services centering on physician practices and health systems, Paragon Transaction Services focuses on execution of a given strategy. Paragon has direct practical experience in leading physician practices, health systems, and working with capital partners – such as private equity firms. Because of this extensive experience in a variety of different settings, Paragon is in a unique position to appreciate the goals, objectives, strategies, and operation of multiple potential partners – in order to facilitate partnerships that work for the longer-term.

Paragon’s objective is to help physicians explore viable options for the future of their practice. To learn more about how Paragon can support your practice, explore the services below.

Healthcare Private Equity

Re-capitalization, or a sale to a private equity firm, is sometimes the best option for a physician practice. PE partnerships with physician practices are announced on a weekly basis. Most transactions are significant, and life-changing for the physicians involved. The PE firm brings added resources, including capital, such that the physician practice can grow regionally and sometimes nationally, in order to achieve scale and greater parity with the increasingly large players in healthcare.  A private equity transaction can benefit physicians in many ways including yielding higher returns, enabling physicians to reduce their tax burden, maintaining the integrity of the practice, and bringing growth-focused management. Many times, through this type of transaction, physicians are able to spend more time with their patients while still maintaining autonomy. Paragon’s team takes great care in matching the right PE firm with practices to ensure the best fit and increase the odds of a successful transaction.

Employment by Hospital System

Many physicians have become employees of their local hospital/health system. Generally, this involves selling practice assets to the hospital and transferring practice employees to hospital employment. It also involves a compensation plan for the physicians based upon a dollar amount per Relative Work Unit (wRVU) generated—as well as compensation for medical directorships and compensation related to incentive/performance-based systems. Frequently, employment by a health system will also include a component related to service line co-management. This form of physician affiliation, if constructed properly, can lead to enhanced alignment.

Professional Services Agreement

Professional services agreements (PSAs) operate much like hospital employment, except rather than the physician being directly employed by the health system, they remain in private practice and are paid a fair-market compensation for professional services rendered on behalf of the health system. As a general rule, all physician compensation and benefits are paid through the PSA, and the health system will bill for and collect all professional fees. Generally, practice assets are sold to the health system and practice employees also transfer to the health system.

Affiliation with another Physician Entity

Physicians have a variety of options available to them with regard physician practice affiliation, including: acquiring another physician practice; selling to/joining another physician practice; affiliating with an Independent Physician Association (IPA); and other options.

Our Criteria

Paragon Health Capital works with mid-market, U.S. medical practices and physician groups. Get more details on having Paragon partner with your business by visiting our Criteria page.

Learn More

To learn more about how Paragon Health Capital can support you, call us at 817-722-5775 or fill out the inquiry form below.

Get in Touch.