Private equity deals grow interest for medical practices — 4 insights

Practice Management

The market for acquisition of medical practices by private equity firms has shown significant growth in recent years, according to Physician's Money Digest.

Here are four insights:

 

1. Bain & Co.'s 2015 Global Healthcare Private Equity Report reported $29.6 billion was invested in healthcare in 2014 by private equity funds in the form of healthcare buyout deals globally, a significant increase from $16 billion in 2013.

 

2. Deborah Dorman-Rodriguez, a partner at Freeborn & Peters, said over the last few years private equities have been specially oriented in dermatology, pain, anesthesia and dental practice, but there's now a growing interest in primary care.

 

3. The interest comes from the changing of healthcare payment models at the government program level, both in Medicare and Medicaid, toward value-based care rather than fee-for-service.

 

4. Physicians looking to monetize equity in their practice can do so through private equity deals. They could find themselves free from debt and relieved of much of the regulatory and administrative burdens based on how the deal is structured and what the physician's role is after the deal closes.

 

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