Michael Kroin’s Post

Private equity might not be right for every physician practice but it is important to consider the benefits, given the numerous challenges that they continue to face. This article provides insights from a few physicians who sold their practices and delves into their motivations as well as how things are going “after the deal” closed.

Great to see entrepreneurial minded physicians coming forward and voicing their experiences with private equity and how it can be an immensely powerful tool to PROTECT physician independence. With so much negative press recently coming from payors, hospital systems, and academic institutions, its refreshing to hear from DOCTORS themselves. When done the right way, private equity can be a powerful strategy for physicians to come together and ensure independent medicine can continue to compete in an ever changing healthcare landscape!

Independent physician practices find themselves grappling with an unprecedented challenge: safeguarding their clinical autonomy amid the onslaught of macroeconomic forces like soaring inflation, encroaching competition from payors and retailers, and dwindling reimbursements. In response, doctors are actively exploring various solutions, with private equity emerging as a prominent consideration. Physician Growth Partners had the honor to contribute to an article in Physicians Practice addressing the false narrative about private equity, and provides insights from physicians that have been through these types of partnership transactions. Read the full article: https://lnkd.in/gW57e-yH #maintainautonomy #growthpartnerships #scale #competition

A good, comprehensive overview of #PrivateEquity trends and considerations in the healthcare space by Thomas Cunningham. Key takeaways: ✔ Tailwinds towards physician groups explore PE abound - Declining physician reimbursement, competitive pressure, inflationary concerns, need for capital/practice expansion including ancillaries. ✔ Culture Matters - finding the right PE firm that aligns with your organization's cultural identity might be the most critical success factor. ✔ Ensuring physicians have clinical autonomy to provide the best patient care and outcomes is a non-negotiable. Curious for others to weigh in on their own experiences - either from the PE side or physician side. What am I missing? Dana Jacoby, Scott Sigman MD, Gary Herschman, Thomas Cunningham, David Uba, David Crawford, Ryan Lundquist, Michael McClain, Masha Dumanis

My colleague Thomas Cunningham put out a nice piece highlighting some of the reasons and benefits of private equity partnerships from the physician perspective. A few key takeaways common to successful physician // PE partnerships: 1) Clinical excellence is top priority 2) Provider autonomy must remain intact 3) Alignment of both culture and incentives 4) Access to experienced resources and capital to support growth Give a look for candid perspectives from physicians across specialties who chose to partner with PE to support the independent practice of medicine. Physician Growth Partners https://lnkd.in/gXhfsWqR

I hear a lot of people make this mistake regarding managed groups in medicine. MSOs are not DSOs even though they have similar names. MSOs are generally one PC entity operating with an MSA as DSOs are multiple consolidated entities now operating with an MSA. DSOs are equivalent to IPA/IPOs which are now being called provider/physician enablement. But MSOs are not IPA/IPOs and DSOs aren't always dentist owned. So when I read articles like this we already know that the same concept does not apply to IPA/IPOs where there is still a majority physician ownership in the practices delivering care, but rather to corporate-owned entities where physicians are no longer majority owners of the practice but are acquihired and receive provider equity and pay to continue operating the practice. Which is the exact problem HB4130 seeks to address. Assuring that corporate owned MSOs no longer own the majority stake in a practice, and that physicians remain the primary owners. MSOs are not bad if they operate like IPAs or IPOs. MSOs however are bad when they're entirely corporate owned and are built to bypass corporate practice of medicine laws to put profits over patient care. https://lnkd.in/geVqqbVh ---- Hi, I'm Dr. Mario Amaro, Founder and CEO Ease, and I talk about all things starting, running, and growing a private practice with AI. Follow me, if you are planning to start one or are currently figuring out creative ways to grow one. #PrivatePractice #SelfEmployment #HealthcareOnLinkedin #HeyEase

What specific challenges or opportunities do private equity deals present in the healthcare industry? Bert Orlov, Managing Director in EisnerAmper's Health Care Industry Group, recently wrote an article in Medical Economics outlining the three key areas practice leaders need to understand to structure effective and successful deals. Read more about it here: https://okt.to/1E9gcY #privateequity #medicalpractice #healthcare

More hospitals and physician practice groups are being acquired by private equity investors. While an acquisition can positively impact patient care and operations, a paper published in JAMA found that these transactions can also be followed by a reduction in hospital assets, potentially compromising patient care. The widespread nature of this trend, coupled with the potential implications for health outcomes, underscore the importance of further rigorous study. https://buff.ly/3Wypxm8 #healthcare

Over 80% of doctors now work for hospitals or corporations. Since January 2019, 44,000 practices have been acquired, with over half owned by non-physicians. This is why physicians need a strategic plan. Investors lack healthcare expertise, and practitioners aren't financial pros. At Vector Medical Group, we bridge this gap. 5 other stats to know: https://bit.ly/4axjwfq

For those interested in why private practice in #medicine has shrunk--- over the past several decades--- and why it may go extinct. I understand the issues all to well, as my wife has been providing important, effective, and personalized care in a small private practice medicine clinic for the past 24 years and is struggling to determine her next step as her practice partner retires this year. Can the practice survive? Can she even find younger physicians willing to join her practice? Could she be the sole MD and have more APPs on her team? Should she just retire and move on to another career? Should she sell to PE or VC or the nearest large hospital system? What about her staff which have been like family for 2 decades? What about her 7000 patients that trust her clinic to provide real, authentic personalized care? The American Medical Association recently submitted a sobering statement to the U.S. House of Representatives Committee on Ways and Means titled, "The Collapse of Private Practice: Examining the Challenges Facing Independent Medicine." This document sheds light on an alarming trend: the erosion of private practice, a backbone of our healthcare system. Independent #physicians face immense pressures—from increasing administrative burdens to reimbursement challenges—that threaten their survival. As large healthcare systems and corporations continue to consolidate, the autonomy and personalized care that private practices offer are at risk of becoming relics of the past. This shift doesn't just affect physicians; it fundamentally alters the patient experience, potentially compromising the quality of care and the patient-physician relationship. The AMA’s statement urges policymakers to recognize and address these challenges, emphasizing the need for reforms that support the sustainability of private practice. Without such changes, we may see further degradation in the diversity and accessibility of care options available to patients. It's crucial for healthcare professionals, policymakers, and patients alike to advocate for the preservation of independent medical practice. The future of personalized, high-quality care depends on it. My wife's patients, staff, and career depend on it. #UsingWhatWeHaveBetter Read the full AMA statement here (https://lnkd.in/gTnVNvmb)