The downside of private equity for physicians 

While private equity investment can provide stable funding and allow practices to be innovative, it may be incompatible with physician practice ethics and sustainability, the American Medical Association wrote in a recent blog post

The Aug. 1 post outlined a study in JAMA Internal Medicine that showed that physician management companies with private equity investment led to a rise in prices for anesthesia services for patients. 

Anesthesia service prices rose 26 percent for patients who used private equity-backed physician management companies, while prices at companies without private equity investment grew by 12.9 percent from 2012 to 2017.

The post also cited a commentary from AMA President Jack Resneck, MD, published in JAMA Dermatology in which  dermatologists reported a loss in physician control after being acquired by private equity firms. 

"While investors tout ongoing local decision-making, practices also may lose some control over staffing levels and capital equipment purchases," Dr. Resneck stated in the commentary.

 

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Webinars

Featured Whitepapers