Six things to know:
1. Forty-one orthopedic practices were acquired by private equity and other investment firms between 2004 and 2019 across 22 states, the report said citing the Journal of the American Academy of Orthopaedic Surgeons. Fifteen of those deals happened in 2022.
2. The number of private equity firms investing in orthopedics has nearly doubled in recent years.
3. The orthopedic field is “highly fragmented,” which is ideal for private equity groups who look for consolidation opportunities.
4. Private equity ownership can help lower costs and improve patient care since it can let physicians move cases to the outpatient setting. They can also help implement calue-based care models.
5. For older physicians, private equity transactions can support their retirement with upfront cash payouts.
6. Private equity groups tend to be focused on large orthopedic groups with brand equity and strong reputations. Physicians should look for partners who are a good cultural fit and put patients and the practice first.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
