In a transformative move for its future, Southeast Houston Cardiology has successfully merged with CLS Health, the leading physician-owned medical group in the Houston area. Founded in 1999, Southeast Houston Cardiology faced a challenging landscape as it approached its 25th anniversary, prompting the seven physician partners to seek a new direction for their practice.*
The merger, completed in 2022, came after years of rising overhead costs, stagnant growth, and increasing financial pressures from hospitals and insurers. Dr. Gerard Abreo, co-founder of the cardiology practice, expressed optimism about the decision, noting, “CLS saved our practice.”
The post-merger results have been overwhelmingly positive, as a recent case study highlighted significant improvements in both efficiency and productivity. Dr. Abreo reported a remarkable increase in his patient load, now seeing twice as many patients per day compared to when he operated independently. Additionally, CLS Health has successfully reduced overhead costs for Southeast Houston Cardiology by more than 25%, from 70% to 52%.
CLS Health’s adept management and innovative processes have been crucial to these results. The organization implemented changes such as taking over all back-office functions like billing and staffing. Dr. Abreo observed the immediate impact, stating, “After just one or two months, I saw the efficiency of the system.”
One key move involved relocating a nurse practitioner from the office to the hospital, where her skills could generate more revenue, while medical assistants took over her previous office responsibilities for a fraction of the cost. This shift, combined with thorough patient chart preparation, has allowed Dr. Abreo and his colleagues to maximize their time in patient care, leading to both greater patient and physician satisfaction.
Another critical aspect of the merger is the use of internal data analysis to streamline operations. Prior to the acquisition, Southeast Houston Cardiology was struggling with patient backlogs. CLS Health utilized data-driven strategies to assign the most efficient cardiologists to the busiest examination rooms, effectively solving the backlog issue.
Financial transparency was another significant concern for the physician partners during their deliberation process. CLS Health has provided a robust software solution that offers real-time access to billing, overhead, and expense details—something Dr. Abreo commended as “the best I’ve seen in 25 years of practice.”
Reflecting on the future, Dr. Abreo asserted that the era of independent practice has become increasingly challenging. He emphasized the need for physicians to unite either through larger groups like CLS Health or face the realities of hospital mergers or venture capital involvement. “The time for single practice is over,” he concluded, believing that the partnership with CLS Health is the optimal choice for sustaining growth and improving patient care.
As Southeast Houston Cardiology marks its significant milestone under the CLS Health umbrella, the future looks brighter with enhanced services, increased efficiency, and patient-focused care at the forefront of its mission.
