Private Equity Firms Buying Out Medical Practices

[drusso]

Private-equity firms are buying doctor’s offices across the U.S. — and critics say profits are coming before patients

"They offer to handle practices’ business affairs and their complex regulatory requirements, leaving doctors to practice medicine. They also say they can introduce efficiencies and leverage economies of scale in the process, a proposition that, backed by deals offering EBITDA multiples as high as 15 times, many doctors have found enticing."

Will private equity drive up the purchase price of medical practices?

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[Yo GabbaPentin]

Private-equity firms are buying doctor’s offices across the U.S. — and critics say profits are coming before patients

"They offer to handle practices’ business affairs and their complex regulatory requirements, leaving doctors to practice medicine. They also say they can introduce efficiencies and leverage economies of scale in the process, a proposition that, backed by deals offering EBITDA multiples as high as 15 times, many doctors have found enticing."

Will private equity drive up the purchase price of medical practices?

NexPhase Announces Acquisition of Gulf Coast Pain Institute and Formation of a New National Interventional Pain Management Platform | NexPhase Capital

This one just happened in my neck of the woods.

 

[drusso]

NexPhase Announces Acquisition of Gulf Coast Pain Institute and Formation of a New National Interventional Pain Management Platform | NexPhase Capital

This one just happened in my neck of the woods.

It could give hospitals a run for their money.

 

[Ducttape]

It could give hospitals a run for their money.

And this is better than hospitals purchasing clinics how?

Seems that a national organization aimed at taking over as many clinics as possible with the concept of assembly line doctors would be more frightening than a local hospital that seeks only local control. Think county govt vs state or the feds...

 

[lobelsteve]

Paincare Holdings. Same thing happened in 2000-2006. Windsor made bank, Trescott too. Then poof.

 

[jsaul]

Paincare Holdings. Same thing happened in 2000-2006. Windsor made bank, Trescott too. Then poof.

So did Alo

A couple of years ago a private equity firm bought the biggest pain group in atlanta.
These investors all want the same thing,... Muitple physicans and locations in the practice with NPs seeing FU's MDs doing procedures, mutiple UDS's on all the patients, and other ancillary streams in the practice like pharmacy and radiology

 

[PainDrain]

I met someone a while back who went to work at a private equity owned pain clinic, someplace in VA. Apparently it was very nebulous who was backing the corporation who opened this series of clinics but it became clear after a few months. She said the focus was on procedures and pills; not on actually providing decent care.

 

[drusso]

So did Alo

A couple of years ago a private equity firm bought the biggest pain group in atlanta.
These investors all want the same thing,... Muitple physicans and locations in the practice with NPs seeing FU's MDs doing procedures, mutiple UDS's on all the patients, and other ancillary streams in the practice like pharmacy and radiology

Meanwhile, the hospitals are hunting site of service differentials and turning MD/DO's into RVU wage slaves. Best ethical course is to stay independent private practice.

 

[powermd]

Nothing makes a doc's interests more aligned with investors than losing his equity and cashing out.

 

[jsaul]

Nothing makes a doc's interests more aligned with investors than losing his equity and cashing out.

in order for the physicians to get bought by these investors out the physicians usually sign a productivity clause stating they have to maintain the same level of productivity for X number of years or they have to return mony

 

[drusso]

in order for the physicians to get bought by these investors out the physicians usually sign a productivity clause stating they have to maintain the same level of productivity for X number of years or they have to return mony

Add Insurance Companies buying out MD/DO's. Whether its Hospitals, Private Equity, or Insurance Companies there are *SO* many ways to "milk the cow" and *SO* many ways to get milked if you are the cow...

With 8k more physicians than Kaiser, Optum is 'scaring the crap out of hospitals'

Whether it's hospital- or insurer-employed physicians, Ken Marlow, an attorney with Waller Lansden Dortch & Davis, told the publication, "The smartest participants in the system are the ones who are going to be able to provide quality care at the lowest cost setting. Whoever gets there first, and whoever is able to do that, I think will be the winner."

 

[Gauss]

Derm is a hot commodity

Doctor’s offices are a hot investment — what does that mean for profit vs. patient care?