A few years ago, private equity was a dirty word among some circles of physicians and surgeons, Becker’s writes. The idea of accepting investment dollars in exchange for autonomy was unattractive for physician owners at best, and dangerous at worse.
Some feared injecting private equity money into healthcare would lead to corporate executives making decisions about patient care and driving volume-based decision-making to turn a profit instead of doing what is best for patients. Those fears are valid and persist today among the fiercely independent. But others looking to take their business to the next level see opportunities with private equity.
Private equity has become pervasive among gastroenterologists and GI-focused ASCs, with large chains such as Gastro Health, which supports 360 physicians nationwide, supported by private equity backing. GI Alliance, which is also backed by private equity, has more than 650 independent gastroenterologists operating in its network. Regional managed service organizations backed by private equity firms such as United Digestive, U.S. Digestive Health and PE GI Solutions are also growing.
The next generation of physicians is seeking a work-life balance, competitive pay and a high degree of autonomy in work schedules that employment models often don’t offer. Private practice is an attractive option, and joining a large private equity-backed organization diminishes the risk of being a solo practitioner while offering the fellowship of experienced physician partners. Read more.
