* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Monday, June 23, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Netflix unveils Dallas immersive venue for fans of hit shows like ‘Squid Game,’ ‘Stranger Things’ – Houston Chronicle

    Step Inside Netflix’s New Dallas Immersive Experience Featuring Hits Like ‘Squid Game’ and ‘Stranger Things

    ‘Puttin’ on the Ritz’: Civic Players bring ‘Young Frankenstein’ to life – Yahoo

    Civic Players Deliver a Hilarious and Unforgettable Performance of ‘Young Frankenstein

    ‘Wheel of Fortune’: Amputee Wins $60,000 After Breaking Incredible ‘Curse’ – Hastings Tribune

    Wheel of Fortune’ Amputee Breaks Incredible ‘Curse’ to Win $60,000!

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    Safety concerns in Deep Ellum create apprehension as the entertainment district gains visitors – CBS News

    Safety Concerns Surge Amid Deep Ellum’s Booming Popularity and Growing Crowds

    Elisabeth Moss’ ‘Handmaid’s Tale’ Emmy chances, by the numbers – Yahoo

    Elisabeth Moss’ ‘Handmaid’s Tale’ Emmy chances, by the numbers – Yahoo

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Promising Technology Stocks To Follow Today – June 22nd – MarketBeat

    Top Technology Stocks to Watch Today – June 22nd

    Technology Convergence Report 2025 – The World Economic Forum

    Technology Convergence Report 2025 – The World Economic Forum

    How AI can help make cities work better for residents – MIT Technology Review

    How AI can help make cities work better for residents – MIT Technology Review

    Tech Champions with Leo Bletnitsky of Healthy Technology Solutions – Buzz Media Group

    Meet Tech Champion Leo Bletnitsky of Healthy Technology Solutions

    Crypto’s true revolution is about humanity, not technology – Cointelegraph

    Crypto’s Real Revolution: Transforming Humanity Beyond Technology

    $1 Billion Problem: New Technology Could Save Your Daily Cup of Coffee – SciTechDaily

    The $1 Billion Challenge: How New Technology Could Rescue Your Daily Cup of Coffee

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Netflix unveils Dallas immersive venue for fans of hit shows like ‘Squid Game,’ ‘Stranger Things’ – Houston Chronicle

    Step Inside Netflix’s New Dallas Immersive Experience Featuring Hits Like ‘Squid Game’ and ‘Stranger Things

    ‘Puttin’ on the Ritz’: Civic Players bring ‘Young Frankenstein’ to life – Yahoo

    Civic Players Deliver a Hilarious and Unforgettable Performance of ‘Young Frankenstein

    ‘Wheel of Fortune’: Amputee Wins $60,000 After Breaking Incredible ‘Curse’ – Hastings Tribune

    Wheel of Fortune’ Amputee Breaks Incredible ‘Curse’ to Win $60,000!

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    Safety concerns in Deep Ellum create apprehension as the entertainment district gains visitors – CBS News

    Safety Concerns Surge Amid Deep Ellum’s Booming Popularity and Growing Crowds

    Elisabeth Moss’ ‘Handmaid’s Tale’ Emmy chances, by the numbers – Yahoo

    Elisabeth Moss’ ‘Handmaid’s Tale’ Emmy chances, by the numbers – Yahoo

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Promising Technology Stocks To Follow Today – June 22nd – MarketBeat

    Top Technology Stocks to Watch Today – June 22nd

    Technology Convergence Report 2025 – The World Economic Forum

    Technology Convergence Report 2025 – The World Economic Forum

    How AI can help make cities work better for residents – MIT Technology Review

    How AI can help make cities work better for residents – MIT Technology Review

    Tech Champions with Leo Bletnitsky of Healthy Technology Solutions – Buzz Media Group

    Meet Tech Champion Leo Bletnitsky of Healthy Technology Solutions

    Crypto’s true revolution is about humanity, not technology – Cointelegraph

    Crypto’s Real Revolution: Transforming Humanity Beyond Technology

    $1 Billion Problem: New Technology Could Save Your Daily Cup of Coffee – SciTechDaily

    The $1 Billion Challenge: How New Technology Could Rescue Your Daily Cup of Coffee

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Health

Private Equity Takeovers of Physician Practices Soared Over a Decade

July 11, 2023
in Health
Private Equity Takeovers of Physician Practices Soared Over a Decade
Share on FacebookShare on Twitter

Private equity acquisitions of U.S. physician practices have risen dramatically over the last decade, driving up consumer prices in the process, according to a new report.

In 2012, there were 75 private equity deals for physician practices across a range of specialties; in 2021, there were 484, marking a more than six-fold increase, Richard Scheffler, PhD, of the University of California Berkeley, and colleagues found.

Over the entire period, the largest number of deals occurred in dermatology (376), ophthalmology (276), gastroenterology (120), and primary care (118), collectively accounting for 81% of the activity, Scheffler and colleagues wrote in the report, a joint effort by the American Antitrust Institute, the Nicholas C. Petris Center on Health Care Markets and Consumer Welfare at the University of California Berkeley, and the Washington Center for Equitable Growth.

“PE [private equity] funds value companies in terms of multiples of EBITDA (earnings before interest, taxes, depreciation, and amortization) because this measure reflects earnings from operations, separate from how the companies are capitalized,” the authors noted. “To profitably divest an acquired company, the PE fund must find a way to increase the company’s multiple, its EBITDA, or both. To increase EBITDA, the PE fund will look for quick ways to cut costs and increase revenue.”

In healthcare, that may include cutting workers or replacing highly paid workers with lower paid ones, switching to cheaper supplies, putting pressure on physicians to perform more profitable procedures, and engaging in aggressive billing and collection practice, the authors said.

Further measures to boost EBITDA may include acquisitions aimed at becoming a dominant player in a market as well as becoming larger and thereby having access to more and cheaper debt.

“Physicians need to be aware of loss of autonomy when they sell their practice to a PE firm,” Scheffler added in an email to MedPage Today. “The risk to patient care is real and troubling.”

Scheffler and colleagues found that the share of metropolitan statistical areas (MSAs) — a proxy for the local physician specialty market — where a single firm had a market share of greater than 30% rose over the last decade. A total of 108 MSAs hit that threshold in 2021, compared with only a handful in 2012.

Overall, private equity acquired practices for 8 of 10 specialties analyzed had statistically significant price increases relative to matched control practices, including gastroenterology (14%), dermatology (4%), ob/gyn (8.8%), ophthalmology (8.7%), radiology (8.2%), orthopedics (7.1%), oncology (16.4%), and primary care (4.1%).

In addition, private equity acquired practices had statistically significant relative increases in expenditures per patient in 6 of 10 specialties: gastroenterology (16.4%), dermatology (4.1%), ob/gyn (10.5%), ophthalmology (15.4%), urology (8.5%), and primary care (6.2%).

“The price increases that we found will eventually be paid by consumers in the form of higher health insurance premiums, which are already a significant share of an employee’s income, particularly when cost sharing is incorporated,” the authors wrote.

The report listed the top 10 private equity firms by the number of physician practice deals (2012-2021):

1. Shore Capital Partners: 134

2. Audax Group: 113

3. Webster Equity Partners: 84

4. Waud Capital Partners: 63

5. Chicago Pacific Founders: 60

6. AEG Vision: 58

6. Riata Capital Group: 58

8. Advanced Dermatology and Cosmetic Surgery: 43

10. Harvest Partners: 38

10. LLR Partners: 38

The report also listed the top 10 private equity deals by value of physician practices (2012-2021):

1. Envision Healthcare: KKR, 2018; $9.9B

2. Team Health Holdings: Blackstone, 2017; $6.1B

3. LifePoint Health: Apollo Global Management, 2018; $5.6B

4. LifePoint Health: Apollo Global Management, 2021; $2.6B

5. Cincinnati Eye Institute: Eyecare Partners, 2021; $600M

6. Ardent Health Services: Equity Group Investments, 2015; $475M

7. Forefront Dermatology: OMERS Private Equity, 2016; $450M

8. U.S. Dermatology Partners: ABRY Partners, 2016; $323M

9. U.S. Anesthesia Partners: Berkshire Partners Heritage Group/USAP/Welsh, Carson, Anderson & Stowe, 2017; $61M

10. Dermatology and Skin Surgery Center: Sheridan Capital Partners/Dermatologists of Central States, 2017; $51M

Recommended policy steps outlined in the report included increased reporting and scrutiny of small physician practice acquisitions, especially those by private equity firms. These also included boosting antitrust-related authority for state and federal entities, mandating increased ownership transparency when it comes to physician practices, lowering barriers to entry like non-competes in concentrated healthcare markets, and expanding liability to private equity funds for portfolio company misconduct.

The report comes as experts continue to pay close attention to the impacts of private equity investment in healthcare. MedPage Today has previously reported on increased health spending as well as more clinician replacement when private equity firms acquire physician practices.

As more physicians become employees rather than owners, some in the field have questioned whether boosting revenues and cutting costs in the wake of private equity acquisitions could have a deleterious impact on how they provide patient care.

The authors of the new report utilized Pitchbook to identify acquisitions of physician practices by private equity firms as well as IQVIA physician databases that provide information about the location, size, and specialty of the practice. They further analyzed healthcare claims data from the Healthcare Cost Institute Commercial Claims Research Dataset.

Funding for the report was provided by a grant from Arnold Ventures.

author['full_name']

Jennifer Henderson joined MedPage Today as an enterprise and investigative writer in Jan. 2021. She has covered the healthcare industry in NYC, life sciences and the business of law, among other areas.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : MedPageToday – https://www.medpagetoday.com/special-reports/features/105426

Tags: EquityhealthPrivate
Previous Post

Positive Surgical Margins More Likely Among Black Men With Oral Cancer

Next Post

Psychology professor develops tool to measure religious coping during trauma

Promising Technology Stocks To Follow Today – June 22nd – MarketBeat

Top Technology Stocks to Watch Today – June 22nd

June 23, 2025
Steelers Prediction Sees TJ Watt Trade to Buccaneers in Blockbuster – Yahoo Sports

Steelers Prediction Sees TJ Watt Trade to Buccaneers in Blockbuster – Yahoo Sports

June 23, 2025
Senior Thesis Spotlight: Considering facets of human psychology from a data science point of view – Princeton University

Exploring Human Psychology Through the Lens of Data Science: A Senior Thesis Spotlight

June 23, 2025
Medieval gold ring found in castle in Slovakia has rare purple sapphire imported from Sri Lanka – Live Science

Stunning Rare Purple Sapphire Unearthed in Medieval Gold Ring at Slovakian Castle

June 23, 2025
Wisconsin man’s fraud scheme funded lavish lifestyle and over 300 snowmobiles, federal charges say – WPR

Wisconsin man’s fraud scheme funded lavish lifestyle and over 300 snowmobiles, federal charges say – WPR

June 23, 2025
2025 College World Series: Scores, bracket, complete results as LSU wins eighth national title in baseball – CBS Sports

LSU Secures Epic Eighth National Baseball Championship in 2025 College World Series Thriller

June 23, 2025
Top economist who previously sounded the alarm on tariffs sees a possible scenario where Trump ‘outsmarted all of us’ – Fortune

Top Economist Raises Alarming Question: Did Trump Outsmart Everyone on Tariffs?

June 23, 2025
Universal Health Services, Inc.’s (NYSE:UHS) Intrinsic Value Is Potentially 34% Above Its Share Price – Yahoo Finance

Universal Health Services’ True Value Could Be 34% Higher Than Its Current Share Price

June 22, 2025
Millennials taking control in Prince George’s County politics – WTOP

Millennials taking control in Prince George’s County politics – WTOP

June 22, 2025
Technology Convergence Report 2025 – The World Economic Forum

Technology Convergence Report 2025 – The World Economic Forum

June 22, 2025

Categories

Archives

June 2025
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
30 
« May    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (697)
  • Economy (712)
  • Entertainment (21,611)
  • General (15,520)
  • Health (9,753)
  • Lifestyle (717)
  • News (22,149)
  • People (715)
  • Politics (719)
  • Science (15,931)
  • Sports (21,209)
  • Technology (15,698)
  • World (692)

Recent News

Promising Technology Stocks To Follow Today – June 22nd – MarketBeat

Top Technology Stocks to Watch Today – June 22nd

June 23, 2025
Steelers Prediction Sees TJ Watt Trade to Buccaneers in Blockbuster – Yahoo Sports

Steelers Prediction Sees TJ Watt Trade to Buccaneers in Blockbuster – Yahoo Sports

June 23, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version