Private equity funds can help spur innovations or provide stable funding for workers’ pensions, but investor expectations for a quick return on investment may clash with a medical practice’s long-term sustainability and physicians’ ethical demands, the American Medical Association reports.
“The notion here is that the private equity firms buy the practices and then their investors expect them to get their money back in roughly five to seven years at a 20% to 30% profit,” said AMA member Francis J. Crosson, MD, one of the experts to present during an education session at the 2022 AMA Annual Meeting on the ethical concerns surrounding private equity acquisitions of physician practices. Read more.
