PE firms have fostered a consolidation of physician practices in a variety of medical specialties over the past decade. They are now accelerating their focus on otolaryngology–head and neck surgery (OTO-HNS) practices, raising capital from pension funds and high-net-worth investors and using the money to purchase equity in the practices, Medscape reports. Their apparent goal is to improve the valuations of the practices and later sell their equity for more than the purchase price.
“Private equity investment has been prevalent in other surgical and procedural specialties, particularly in dermatology and ophthalmology,” Hemali Shah, BS, a medical student at Yale University in New Haven, Connecticut, told attendees here at the American Academy of Otolaryngology–Head and Neck Surgery (AAO-HNS) 2022 Annual Meeting. She said that until now, no studies have focused on PE investment in OTO-HNS practices, spurring her to investigate the issue. Read more.
