Independent physician practices have been hit hard by the financial stress of the COVID-19 pandemic.
Since the onset of COVID-19, medical practices have been increasingly under threat of closure and time-strapped physicians are crumbling under administrative loads.
A new company, incubated within the Silicon Valley-based innovation subsidiary of the American Medical Association, offers a turnkey practice solution designed to relieve physicians of the administrative burdens and financial pressures intrinsic to today’s private practice.
Emergence Healthcare Group developed a platform that offers physicians more time to focus on patients and the upside from owning their practice while alleviating the pressures of managing one, according to the company.
Emergence is the latest company to spin out of AMA's Health2047. Other portfolio companies spun out by Health2047 include Phenomix Sciences, a chronic disease prevention company, Zing Health, a tech-enabled Medicare Advantage plan that helps doctors and communities coordinate improved and individualized care for chronically underserved populations, preventive chronic care company First Mile Care and Akiri, a “network-as-a-service” that enables the sharing and use of trusted health data in real-time.
Jae Chun, who has worked as a healthcare consultant and has a background in healthcare strategy and operations, was inspired to launch Emergence Health Group to help independent physicians with the challenges of business management.
“Emergence was born from every interaction I’ve had with physicians, founded on the belief that each and every physician has earned the opportunity to practice in the setting of their choice without needing an MBA on the fly to thrive. I’m thrilled to be rolling up my sleeves alongside Health2047 as we empower every physician who wants to pursue or remain in private practice. We’ve got their backs," said Chun, founder and CEO of Emergence Healthcare Group, in a statement.
Administrative responsibilities have climbed to more than 20% of a physician’s time and more than 50% of revenue. As a result, physicians find themselves struggling to juggle non-clinical demands with their primary responsibility– seeing patients. As time and financial pressures mount for each individual practice, less than half of all physicians in the U.S. are choosing private practice, from 60% in 2012, according to the company in a press release.
“Until now, there have been limited options to support private practice physicians who are grappling with the limitations of time and resources,” said Health2047 CEO Lawrence K. Cohen. “Emergence is an incredible offering for independent practices, and its timing could not be better.”
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With Emergence’s turnkey practice solution, owning a practice no longer means having to run one.
The company provides a platform for physicians to launch and manage new practices, as well as manage existing practices: from finding, designing, and maintaining clinic space to hiring, training, and managing non-clinical professionals. Day-to-day administrative management includes practice management systems/EHR; billing, collections and revenue cycle; marketing, advertising and growth; reporting and analytics; and customer service, the company said.
Improved practice profitability is also uniquely designed into the Emergence model by allowing individual practices to benefit from the economies of scale it generates, which is currently enjoyed by large healthcare systems.
“It’s critical that independent practices are able to benefit from new solutions to improve both practice profitability and professional satisfaction," Chun said.