In an Oct. 9 MGMA Stat poll, healthcare leaders were asked, “Do you plan on relocating your organization in the next two years?” Of the 1,579 applicable responses, 12% responded yes, 82% responded no and the remaining 6% were unsure. Of those who responded “no,” 9% said they had recently relocated.
This data can be used in conjunction with a 2016 MGMA Stat poll, which asked, “Have you changed your physical space in the past 2 years?” According to the 2016 poll, 20% of practices remodeled and 18% added to their current space. This may be a more reasonable alternative to relocating.
The 12% who responded that they are moving cited growth of the practice and the space being too small for their needs. Other reasons to relocate include:
- Expired lease or non-renewal
- Demographics and location of patients, as they relate to office accessibility. This may be due to population shifts in the geographic footprint of the practice, desire to attract patients in a different area, changes in neighborhoods serviced and other patient-related factors.
- Need for more or less space, improved layout, overall appearance, parking or other access, availability of public transportation, or other physical characteristics of the current or desired space.
- Practice has been given a mandate to move. For example, a hospital or other related healthcare entity built a new medical office, or are there other enticements such as being closer to the hospital so physicians don’t have to travel as far to make rounds?
Before moving your medical practice, consider the following:
- What’s the age and condition of the current office or new office?
- How will the new lease compare to your current lease? Are additional costs, such as cleaning, maintenance and common areas, included? How affordable is the new location and how will it affect practice overhead?
- Will you be able to purchase the property, if interested? Is it an existing building or is it new construction?
- Will there be potential buildout and moving costs?
- Will there be competition — for example, the proximity to the current practice office and other practices. Will the new office provide coverage in an underserved area for the specialty?
- How accessible are referring providers or the hospital, if this is a consideration
- How will the new location affect staff?
- Will there be parking?
- Will current patients be able to visit the new office or will they have to go elsewhere? Will the new office provide an opportunity for marketing and promotion?
MGMA has created a toolkit of resources to help facilitate your organization’s relocation. For a limited time, you can access and download MGMA’s exclusive practice relocation checklist. This multistep guide starts 12 weeks out and provides week-by-week instructions for practices anticipating physical relocation. From selecting a date, notifying staff and beginning to transition print materials to breaking down the day of the move and following up after the move is complete, this tool will help guide you through the entire process Additionally, MGMA offers a practice relocation letter template and a practice relocation tip sheet.
JOIN MGMA STAT
Our ability at MGMA to provide great resources, education and advocacy depends on a strong feedback loop with healthcare leaders. To be part of this effort, sign up for MGMA Stat and make your voice heard in our weekly polls. Sign up by texting “STAT” to 33550 or visit mgma.com/stat. Polls will be sent to your phone via text message.
Need professional assistance understanding your options for contracting? MGMA Consulting can help identify actionable solutions tailored for your organization.
Laurence Kinzler, MBA, FHFMA, FACMPE
Consultant
MGMA Consulting
