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As large healthcare groups buy general practices around New Zealand, but Silverdale Medical says it intends to remain independently GP-owned.
Currently, Health NZ says about 68 per cent of practices are owner operated, however the shift towards corporate ownership has accelerated this year. In March, US private equity firm TPG completed its purchase of Tamaki Health, which operates 51 GP and urgent care clinics with more than 230,000 enrolled patients.
In July, shareholders confirmed healthcare provider Tend’s acquisition of The Doctors, the medical division of Green Cross Health, which has about 65 clinics and more than 400,000 enrolled patients.
The deals come at a time when owner-operated clinics are under substantial financial and workforce pressure. The Royal NZ College of General Practitioners latest sector survey puts the median age of GPs at 51, with 70 per cent reporting moderate or high burnout and 35 per cent intending to retire by 2030.
College president Dr Luke Bradford said in May that, after years of cumulative change, under-investment and uncertainty, the workforce was increasingly frustrated and fatigued.
Closer to home, Silverdale Medical remains independently owned and chief operating officer Alberto Lenzi says this allows the practice to make long-term decisions without pressure from outside shareholders seeking short-term returns.
“Our ownership model has always been centred on one principle: decisions should start with what’s best for patients and the community we serve.”
Lenzi says the practice has received approaches from buyers over the years, but has not viewed the business simply as an asset to be traded.
However he accepts that corporate ownership can offer advantages, and there are many good organisations operating under different ownership models.
“The advantage of being GP-owned is that decision making remains close to the frontline. We can move quickly, respond to local community needs, and invest in initiatives because they are clinically the right thing to do,” Lenzi says.
“The trade-off is that we don’t necessarily have access to the same scale, capital or centralised support that larger corporate groups can provide. That means we have to be disciplined, innovative and financially responsible.”
Lenzi says funding needs to recognise the growing complexity of modern general practice and its critical role in keeping people out of hospital.
“A strong primary care system is one of the most effective investments any health system can make. When general practice is well supported, patients receive better care closer to home, and the wider health system benefits.
