Private equity news article

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'Get that money!' Dermatologist says patient care suffered after private equity-backed firm bought practice

A former doctor at a private equity-owned dermatology chain alleges lost biopsies, overbooking and questionable quality control in the company-owned lab.

www.nbcnews.com

Glad the media is finally talking about how PE is ruining healthcare and the use of physician extenders.

 

[doctalaughs]

'Get that money!' Dermatologist says patient care suffered after private equity-backed firm bought practice — NBC News

A former doctor at a private equity-owned dermatology chain alleges lost biopsies, overbooking and questionable quality control in the company-owned lab.

apple.news

Glad the media is finally talking about how PE is ruining healthcare and the use of physician extenders.

This is exactly right. PE is literally r*ping american medicine and patients.

Only media coverage and public outrage will change things though. In dermatology, some physicians are fighting back and speaking out —but inevitably we’ll lose this fight like other specialties have. PE has the same playbook that works:

- offer the older physician-owners packages they cannot refuse to get their practices
- screw over the younger physicians by lowering salaries, increasing volumes and hiring an army of low-quality midlevels to supervise.
- buy out “leaders” in the field’s societies and academia by giving cushy well-paid positions, in exchange for not opposing PE takeovers.

 

[GassYous]

People who work in PE are all about million dollars this million dollars that. They improve practices with "synergies" and "increased back office efficiencies" that they claim individual providers cannot manage. They buy hospitals and systems, bleed out as much profit as possible, cut as much as they can and then try to bounce it to the next sucker.

But they don't really understand the businesses they buy. They don't understand that the decisions they make affect real people, both the clinicians/staff and the patients. They just focus on short sighted decision making to maximize the bottom line. Once they're gone, they don't care what happens.

 

[deleted941485]

People who work in PE are all about million dollars this million dollars that. They improve practices with "synergies" and "increased back office efficiencies" that they claim individual providers cannot manage. They buy hospitals and systems, bleed out as much profit as possible, cut as much as they can and then try to bounce it to the next sucker.

But they don't really understand the businesses they buy. They don't understand that the decisions they make affect real people, both the clinicians/staff and the patients. They just focus on short sighted decision making to maximize the bottom line. Once they're gone, they don't care what happens.

As much as I hate PE and there horrible ways, it was the senior partners docs that let them in many times.

 

[Mman]

People who work in PE are all about million dollars this million dollars that. They improve practices with "synergies" and "increased back office efficiencies" that they claim individual providers cannot manage. They buy hospitals and systems, bleed out as much profit as possible, cut as much as they can and then try to bounce it to the next sucker.

But they don't really understand the businesses they buy. They don't understand that the decisions they make affect real people, both the clinicians/staff and the patients. They just focus on short sighted decision making to maximize the bottom line. Once they're gone, they don't care what happens.

they perfectly understand the businesses they buy, they just don't care. Their own business is to make money and they are really good at it so they try to squeeze every penny they can. Long term health of a physician office/practice is not their concern, nor is the quality of medical care delivered.

 

[PainDrain]

People who work in PE are all about million dollars this million dollars that. They improve practices with "synergies" and "increased back office efficiencies" that they claim individual providers cannot manage. They buy hospitals and systems, bleed out as much profit as possible, cut as much as they can and then try to bounce it to the next sucker.

But they don't really understand the businesses they buy. They don't understand that the decisions they make affect real people, both the clinicians/staff and the patients. They just focus on short sighted decision making to maximize the bottom line. Once they're gone, they don't care what happens.

This is playing out locally in my area after a PE group bought a small hospital system and attempted to squeeze out every dime they could. They made drastic cuts, fired or replaced trusted physician leaders and cut ancillary staff. What they didn’t realize was the local ramifications and they never knew the local regulatory scene; which may come back to haunt them. They are fighting several lawsuits right now and they may lose money due to unforeseen obligations that are written into state law. It would be nice if they lost their shirts and it all imploded.

 

[Blockit]

they perfectly understand the businesses they buy, they just don't care. Their own business is to make money and they are really good at it so they try to squeeze every penny they can. Long term health of a physician office/practice is not their concern, nor is the quality of medical care delivered.

This. 100%. These people only care about return on equity. That’s it.

 

[IMGASMD]

This is playing out locally in my area after a PE group bought a small hospital system and attempted to squeeze out every dime they could. They made drastic cuts, fired or replaced trusted physician leaders and cut ancillary staff. What they didn’t realize was the local ramifications and they never knew the local regulatory scene; which may come back to haunt them. They are fighting several lawsuits right now and they may lose money due to unforeseen obligations that are written into state law. It would be nice if they lost their shirts and it all imploded.

Hopefully they get boned so hard and let all their friends know, how much it cost them.

 

[deleted87051]

This. 100%. These people only care about return on equity. That’s it.

The game plan is typically to buff the numbers, “add value”, flip, and be out in 5 years.

 

[deleted87051]

Hopefully they get boned so hard and let all their friends know, how much it cost them.

They’re getting boned so hard that the markets for exotic watches, cars and more deals have exploded.

 

[sevo00]

They’re getting boned so hard that the markets for exotic watches, cars and more deals have exploded.

as in....if you want to buy one of those items now is the time to do it?

 

[Mman]

The game plan is typically to buff the numbers, “add value”, flip, and be out in 5 years.

the most effective buffing of the numbers they do is simply use debt to increase leverage and rate of return. The rest is just minor details.

 

[lane]

Those PE firms and their deep pockets are the only obstacle to the insurance companies and their lobbyists driving rates to CMS levels.

 

[doctalaughs]

Those PE firms and their deep pockets are the only obstacle to the insurance companies and their lobbyists driving rates to CMS levels.

I would disagree. Before PE there were plenty of physician-owned groups that could negotiate a fair rate.

I would agree that insurance has become more brazen and dirty in their tactics in the last two decades. If you are a “small-fish” it’s hard —- but PE doesn’t offer anything unique to fight insurance above a big physician owned group (or hospital system that has a good market share in any region). The downsides of PE in terms of harm to our patients and the health system FAR out balance any good they do fighting another evil (insurance giants).

 

[Howard888]

I would disagree. Before PE there were plenty of physician-owned groups that could negotiate a fair rate.

I would agree that insurance has become more brazen and dirty in their tactics in the last two decades. If you are a “small-fish” it’s hard —- but PE doesn’t offer anything unique to fight insurance above a big physician owned group (or hospital system that has a good market share in any region). The downsides of PE in terms of harm to our patients and the health system FAR out balance any good they do fighting another evil (insurance giants).

 

[Howard888]

Fully agree. The no surprises act and all the problems with it arose because private equity has driven up rates to a point that everyone took notice and the worst part is physicians get less than 50% of those earnings.

I hope the NSA drives private equity out of medicine. If you are bold enough I would use this opportunity to approach Surgery Centers and hospitals to offer service as these private equity backed groups go out of network which they most undoubtedly will.

The only reason USAP got back in network with United was to buffer their books to divest stock again. It was a short term play. Insurers will attack again as soon as the NSA takes affect

 

[lane]

Fully agree. The no surprises act and all the problems with it arose because private equity has driven up rates to a point that everyone took notice and the worst part is physicians get less than 50% of those earnings.

I hope the NSA drives private equity out of medicine. If you are bold enough I would use this opportunity to approach Surgery Centers and hospitals to offer service as these private equity backed groups go out of network which they most undoubtedly will.

The only reason USAP got back in network with United was to buffer their books to divest stock again. It was a short term play. Insurers will attack again as soon as the NSA takes affect

USAP has maintained an in network strategy, and got back in network with United to align with that strategy. Hospitals want their anesthesia groups to remain in network; often the contract depends upon it.
You don’t see any small private practices suing major payors or soliciting departments of insurance to ensure adequate networks. Like it or not, your group likely only has until the end of your next contract until the 30% drop comes. BCBS already sent ultimatums to providers in NC. United has been doing for 2 years even before SMB legislation.
The business and politics of medicine are dirty, and are becoming increasingly so. You may not like PE, but I’d be far more concerned with the other guys across the table

 

[doctalaughs]

. You may not like PE, but I’d be far more concerned with the other guys across the table

Neither is good. Both are out to take as much money out of the system as possible - with no care for patient safety and no actual value-add to our healthcare system.

Just because they fight each other doesn’t mean we should ally with either one, or pretend they will help us in any way.

 

[Howard888]

If USAP doesn’t divest their stock very shortly It’s only because no one will but it with the NSA.

PE led to what is going on right now. Anyone who thinks any good can come from them works for them or got a payout

 

[dieABRdie]

This is playing out locally in my area after a PE group bought a small hospital system and attempted to squeeze out every dime they could. They made drastic cuts, fired or replaced trusted physician leaders and cut ancillary staff. What they didn’t realize was the local ramifications and they never knew the local regulatory scene; which may come back to haunt them. They are fighting several lawsuits right now and they may lose money due to unforeseen obligations that are written into state law. It would be nice if they lost their shirts and it all imploded.

Any chance you could link or provide info about that situation? I've gained an interest in laws regulating medical practice....

 

[Lecithin5]

The game plan is typically to buff the numbers, “add value”, flip, and be out in 5 years.

Exactly. It’s all funny money built on a house of cards. A total ponzi scheme.

 

[painstop]

I just read this article…the interview looks scripted but shows that PE backed firms (TH) can do some good going against insurers (United). Both scum in my opinion but PE slightly more beneficial for physicians:

Home - TeamHealth

www.teamhealth.com

 

[mmag]

Here's a physician group fighting back against Envision. The state laws that ban the corporate practice of medicine keeps non-for profit hospitals from directly hiring physicians and thus disqualifying them from PSFL, but at the same time private equity ownership of physician groups is ok.

Doctors sue Envision Healthcare, say private equity-backed firm shouldn’t run ERs in California

The suit says California law bars corporations from practicing medicine. Many states have similar laws but haven’t invoked them.

www.nbcnews.com

 

[Howard888]

Don’t fool yourselves. Private groups are also suing insurers. Lawsuits are also having success.

USAP could have won their lawsuit against United-after a couple years-but that timeline didn’t fit with when PE wanted to sell internal stock-so they came to table to inflate numbers.

The play for the Drs would have been to keep up the fight and the suit but they did what was best for PE

N.C. patients sue UnitedHealth Group, taking on major insurance company

Charlotte-area patients are suing their insurance after getting a shocking bill in the mail.

www.wbtv.com

TeamHealth wins lawsuit against UnitedHealth

Tennessee-based TeamHealth Holdings has won a lawsuit against UnitedHealthcare, which alleged the insurer's shared savings plan encouraged the underpayment or termination of physician contracts. The suit claimed UHC underpaid on 11,000 claims for a total of about $10.5 million.

www.healthcarefinancenews.com

 

[Mman]

While AMCs are not great for physicians, they are our biggest ally in the fight against insurers. And they provide deep pockets and lots of lawyers to the fight which is something small private groups cannot really do.

And with the current environment, I'm happy that the AMCs are wearing the big target insurers are going after and not me. I mean it's only a matter of time til they get to the smaller fish, but hopefully they can win the fight first.