JAMA perspective column on private equity in health care

[Krukenberg]

Potential Implications of Private Equity Investments in Health Care Delivery

health policy researcher at Harvard wrote about risks of private equity in medicine including overutilization, unsafe reliance on PAs or NPs, and cutting quality and safety programs that create overhead.

Anyone aware of PE buying rad onc practices? What are the reasons you think they might not pursue rad onc acquisitions? I can’t see them finding a way to employ an army of APPs.

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[medgator]

Dermatology and Private Equity. IS RadOnc next?

 

[PhotonBomb]

Interesting.

This has been a huge problem in optho as well.

 

[deleted947887]

Potential Implications of Private Equity Investments in Health Care Delivery

health policy researcher at Harvard wrote about risks of private equity in medicine including overutilization, unsafe reliance on PAs or NPs, and cutting quality and safety programs that create overhead.

Anyone aware of PE buying rad onc practices? What are the reasons you think they might not pursue rad onc acquisitions? I can’t see them finding a way to employ an army of APPs.

21st Century Oncology's owners are a collection of hedge fund firms: Beach Point Capital Management, Governors Lane, J.P. Morgan Investment Management, Oaktree Capital Management, Roystone Capital Management and HPS Investment Partners.

21C is the new CCTA

 

[domestique]

The 21c situation is a bit of an anomaly and a product of an era which is now bygone. PE feeds off fragmentation (ie markets with lots of small inefficient players none of whom, by definition, have significant market share). The rad onc market is very mature and consolidated in most metros. I'm sure you could see some PE deal activity here or there but nothing like what derm has seen.

 

[Mandelin Rain]

21st Century Oncology's owners are a collection of hedge fund firms: Beach Point Capital Management, Governors Lane, J.P. Morgan Investment Management, Oaktree Capital Management, Roystone Capital Management and HPS Investment Partners.

21C is the new CCTA

21C's sterling record demonstrates that concerns regarding cut corners are completely unfounded.

 

[deleted947887]

I disagree. People just dont look hard enough. How many of you knew 21C was owned by PE?

Here are a few more:

https://www.thehealthcareinvestor.c...-general-atlantics-majority-stake-in-startup/

The 21c situation is a bit of an anomaly and a product of an era which is now bygone. PE feeds off fragmentation (ie markets with lots of small inefficient players none of whom, by definition, have significant market share). The rad onc market is very mature and consolidated in most metros. I'm sure you could see some PE deal activity here or there but nothing like what derm has seen.

 

[domestique]

I disagree. People just dont look hard enough. How many of you knew 21C was owned by PE?

Here are a few more:

https://www.thehealthcareinvestor.c...-general-atlantics-majority-stake-in-startup/

The scale of activity is massively different. This is not debatable. It's evident in the numbers (number of deals x average size of deal). Also, the 21c story is complicated and fundamentally different from the PE activity elsewhere on the provider side of health care. 21c landed into this current investment syndicate which is a combo of PE, investment banks, and other institutional investors as a result of a failed bid to take the company back public.

I assure you, PE interest in acquiring rad onc practices is low at the moment.

 

[deleted947887]

How do you know this? Why is it not debatable? That's a weird response. What's complicated? Teach me.

The scale of activity is massively different. This is not debatable. It's evident in the numbers (number of deals x average size of deal). Also, the 21c story is complicated and fundamentally different from the PE activity elsewhere on the provider side of health care. 21c landed into this current investment syndicate which is a combo of PE, investment banks, and other institutional investors as a result of a failed bid to take the company back public.

I assure you, PE interest in acquiring rad onc practices is low at the moment.

 

[deleted947887]

Obviously this has been beaten to death, but what I find interesting is how someone who works for a PE firm can have a say in the certification (effective supply) of radiation oncologists. That is mind boggling.

 

[medgator]

21st Century Oncology's owners are a collection of hedge fund firms: Beach Point Capital Management, Governors Lane, J.P. Morgan Investment Management, Oaktree Capital Management, Roystone Capital Management and HPS Investment Partners.

21C is the new CCTA

Vantage oncology was funded by PE as well. And when they got big enough, they sold to McKesson/US oncology

 

[domestique]

How do you know this? Why is it not debatable? That's a weird response. What's complicated? Teach me.

I know this because I advise PE firms.

 

[deleted947887]

I know this because I advise PE firms.

Ah. That makes sense. So you have a COI in this debate. That's why it's not debatable. Got it.

 

[domestique]

Ah. That makes sense. So you have a COI in this debate. That's why it's not debatable. Got it.

Alright, last response from me because my interest is waning.

I am paid to provide advice. I couldn't care less whether they pull the trigger on a particular deal or not. To avoid COI myself, I am a party to no such investments. If anything, shouldn't I want there to be more juice in the market for rad onc/onc acquisitions? Wouldn't more people be calling me more and therefore paying me more if there were more deals being examined?

It's not debatable, because they are numbers. Deal activity are data. The data don't care how you feel about them.

Also, regarding the other deals cited here. There is a difference between PE firms taking leadership/being the driver of the acquisitions as they have done in spades in derm and these deals where PE is part of a large syndicate.

 

[deleted947887]

Last post from me because you're obviously way more important than me.

You have an incentive to downplay the role of PE in the RO market because you feed off of that role (that was the COI I was refering to).

Alright, last response from me because my interest is waning.

I am paid to provide advice. I couldn't care less whether they pull the trigger on a particular deal or not. To avoid COI myself, I am a party to no such investments. If anything, shouldn't I want there to be more juice in the market for rad onc/onc acquisitions? Wouldn't more people be calling me more and therefore paying me more if there wore more deals being examined?

It's not debatable, because they are numbers. Deal activity are data. The data don't care how you feel about them.

Also, regarding the other deals cited here. There is a difference between PE firms taking leadership/being the driver of the acquisitions as they have done in spades in derm and these deals where PE is part of a large syndicate.

 

[Mandelin Rain]

Wallner should rewrite the physics exam to include a section on how to bill IMRT QA before every fraction.

This is clinically relevant info when you're owned by hedge fund managers.

 

[theabr4trump]

Our field is in GREAT hands, people!