3 orthopedic goups to unite

Alliance will allow streamlining of resources, instead of duplication

The Commercial Appeal
December 15, 2007
By Daniel Connolly

In a move that will create the second-largest orthopedic physicians' group in Memphis after the Campbell Clinic, three organizations will merge to control overhead costs.

Memphis Orthopaedic Group, Orthomemphis PC and Tabor Orthopedics PC plan to merge on April 1.

The organizations will continue to do business under their own names, but will legally be a single organization, Orthopaedic Alliance PC.

Orthopedics is the study of injuries and diseases of the muscular and skeletal systems, from torn rotator cuffs to arthritis. The specialty is especially important to Memphis, the world's second-largest orthopedic medical device hub after Warsaw, Ind.

Local orthopedic surgeons are already deeply involved in academic and company-sponsored research and the merger could set the stage for new collaborations among doctors, industry and nonprofit institutions.

It could make a new partnership easier for the InMotion Musculoskeletal Institute, an independent orthopedic laboratory that launched last year, said Dick Tarr, the lab's president and executive director.

"That's good news for us because I have one point of contact instead of three right now," said Tarr, whose group already works extensively with Campbell Clinic and is seeking to forge alliances with other organizations.

But in the short term, the goal is to improve the financial picture at the physicians' groups.

"We have three groups who essentially do the same thing in different parts of the city that are duplicating a lot of resources," said Dr. Owen Tabor Jr. of Tabor Orthopedics. "And it made sense to combine and not duplicate a lot of those resources, particularly on the business end of the deal, where you've got multiple billing systems and multiple purchasing systems."

Tabor said that in an economic environment of rising costs and reduced Medicare reimbursements, medical groups are under pressure to become more efficient.

He said he's been sending patients to sub-specialists at Orthomemphis for several years.

"Guys in my group are friends with guys in their group, and we just have over the years have said to each other several times, 'Why are we not working together instead of against each other?'" he said.

The new group would have about 30 physicians. The Campbell Clinic has close to 40, said its chief of staff, Dr. James H. Beaty.

"As you know, next year we're going to celebrate our 100th anniversary. I don't think it will have any impact on the clinical fabric of the orthopedic community," he said.

The new organization will be run by a five-member board consisting of Tabor, Dr. Randall Holcomb of Orthomemphis and Dr. Riley Jones of Memphis Orthopaedic Group. One doctor each from the latter two groups would also serve.

Orthomemphis CEO Ken E. Beasley and Memphis Orthopaedic Group administrator Dan Hein will make up the new organization's executive management team.

The city's orthopedic resources include companies Smith & Nephew and Wright Medical Group, whose biggest sellers are artificial hips and knees, and Medtronic, whose spinal surgery unit is based here.

Several smaller companies aim to develop the latest new orthopedic technologies. Local leaders are investing heavily in facilities that could foster the growth of such companies and create high-paying jobs in the area. The $450 million UT-Baptist research park now under construction on the site of the old Baptist Memorial hospital Downtown is expected to focus heavily on orthopedic research.

-- Daniel Connolly: 529-5296