1 pro vs. 3 potential cons of private equity in orthopedics


While private equity can boost a practice's purchasing power, one orthopedic surgeon says it comes with a risk of less autonomy.

Paul Kosmatka, MD, is an orthopedic surgeon at Essentia Health in Duluth, Minn. He recently spoke with Becker's about the benefits and disadvantages of private equity in orthopedics. 

Editor's note: This response was lightly edited for clarity and length.

Q: What are the pros and cons of private equity in the spine and/or orthopedic industries?

Dr. Paul Kosmatka: The potential pro of private equity in the orthopedic industry is the infusion of capital for expansion or purchase of necessary equipment, e.g., MRI [machines], EHRs or surgery centers. The cons are loss of autonomy, potential lack of focus on quality and having one more entity making money from the hard work of orthopedic surgery.  

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