The central concept in Great Oaks PCC approach to medical clinic consolidations is to use commercial bank financing primarily.   This enables the associated practitioners to (i) exercise more autonomy than would normally be possible in a platform  controlled by private equity capital, and (ii) obtain substantially higher financial benefits.  

By means of the affiliated management services organization (MSO), clinics will benefit from professional management of all non-regulated aspects of the clinics,  leaving the doctors and medical staff to focus primarily on patient care.  The Core Clinics’ consolidated resources enable the PCC platform to rely primarily upon commercial banks for financing the partnership’s operating needs and funding additional acquisitions.   This greatly reduces the cost of capital for all purposes.

There are two basic ways to monetize a doctor’s medical practice equity.  
 
SELL THE PRACTICE:   Typically, loss of control will result from sale to a larger platform, often one controlled by private equity, which is a common solution for those retiring.

MERGE THE PRACTICE into a PCC platform: Merge the practice into a larger operating partnership with other doctors, cashing out a portion of the equity while leaving the remaining equity interest in the platform.  The PCC partnership is primarily bank-financed and appeals mainly to doctors who plan to actively practice medicine for at least five years.  

A Partnership with Core Clinics (PCC) embodies a style of managing clinics compatible with patient-centered healthcare.   While profitability is essential for any viable enterprise, the PCC platform’s goals for financial performance will be tempered by the doctors’ professional standards -- a balance between prudent business practices and an optimal clinic experience for patients and staff.

Doctors in the ‘Core Clinics’ will have financial rewards from acting as the founders and benefit from the opportunity to determine the platform’s fundamental policies.  The enterprise is effectively doctor -controlled from the outset. Benefits to physicians include:
·    autonomy in regulated clinic operations,
·    maintaining local clinic identity/brand, and
·    ready access to capital for clinic expansions and adding new staff.  

Great Oaks works closely with doctors to align the PCC clinic platform for sustainable financial performance while dealing with individual doctors’ needs for:
• Competitive base salary and equitable performance-based total compensation
• Substantial downstream dividends paid by the PCC platform.
• A full complement of benefits providing insurance (including medical liability), vacation and professional development
• Removing personal liability from business-related debt
• Low-leverage financial structure with no private equity control
• Opportunity to cash out some equity at the PCC formation
• Preserving and increasing the value of PCC equity shares
• Downstream opportunities to cash out equity with the PCC platform
• Upon retirement, PCC shares can be cashed out or transferred to investment funds