Private Equity Acquisition of Physician Practices
Authors: Lawrence P. Casalino, Rayhan Saiani, Sami Bhidya, Dhruv Khullar, Eloise O'Donnell
Journal: Annals of Internal Medicine (2019)

Ideas and Opinions15 January 2019Private Equity Acquisition of Physician PracticesLawrence P. Casalino, MD, PhD, Rayhan Saiani, MD, Sami Bhidya, MS, Dhruv Khullar, MD, MPP, and Eloise O'Donnell, MPHLawrence P. Casalino, MD, PhDWeill Cornell Medicine and New York Presbyterian Hospital, New York, New York (L.P.C., R.S., D.K.)Search for more papers by this author, Rayhan Saiani, MDWeill Cornell Medicine and New York Presbyterian Hospital, New York, New York (L.P.C., R.S., D.K.)Search for more papers by this author, Sami Bhidya, MSNew York Presbyterian Hospital, New York, New York; and Weill Cornell Medicine, New York, New York (S.B., E.O.)Search for more papers by this author, Dhruv Khullar, MD, MPPWeill Cornell Medicine and New York Presbyterian Hospital, New York, New York (L.P.C., R.S., D.K.)Search for more papers by this author, and Eloise O'Donnell, MPHNew York Presbyterian Hospital, New York, New York; and Weill Cornell Medicine, New York, New York (S.B., E.O.)Search for more papers by this authorAuthor, Article, and Disclosure Informationhttps://doi.org/10.7326/M18-2363 SectionsAboutFull TextPDF ToolsAdd to favoritesDownload CitationsTrack CitationsPermissions ShareFacebookTwitterLinkedInRedditEmail Acquisition of physician practices by private equity firms has increased dramatically during the past few years (1). Such acquisitions are a significant phenomenon with unknown consequences for physicians and patients, although they have received little attention from researchers and policymakers.We describe this phenomenon and explore its implications, based on review of the gray literature and the very limited peer-reviewed literature. We interviewed 21 knowledgeable individuals around the United States, including consultants; attorneys; investment bankers; and leaders of private equity firms, physician practices, and health insurers.Private equity firms invest in many industries using capital provided by pension funds, sovereign ...References1. Herschman GW. Physician groups should consider strategic options as mergers, acquisitions boom. MGMA Connex. 2018;(May);26-8. Google Scholar2. Pavarini PA, Schaff MF. New barbarians at the gate? What private equity wants from medical practices and how to advise clients. 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The rise and fall of the physician practice management industry. Health Aff (Millwood). 2000;19:42-55. [PMID: 10645072] CrossrefMedlineGoogle Scholar8. Robbins CJ, Rudsenske T, Vaughan JS. Private equity investment in health care services. Health Aff (Millwood). 2008;27:1389-98. [PMID: 18780929] doi:10.1377/hlthaff.27.5.1389 CrossrefMedlineGoogle Scholar9. Burns LR, Pauly MV. Transformation of the health care industry: curb your enthusiasm? Milbank Q. 2018;96:57-109. [PMID: 29504199] doi:10.1111/1468-0009.12312 CrossrefMedlineGoogle Scholar10. Burns LR, Goldsmith JC, Sen A. Horizontal and vertical integration of physicians: a tale of two tails. Adv Health Care Manag. 2013;15:39-117. [PMID: 24749213] CrossrefMedlineGoogle Scholar Author, Article, and Disclosure InformationAffiliations: Weill Cornell Medicine and New York Presbyterian Hospital, New York, New York (L.P.C., R.S., D.K.)New York Presbyterian Hospital, New York, New York; and Weill Cornell Medicine, New York, New York (S.B., E.O.)Financial Support: By the Physicians Foundation Center for the Study of Physician Practice and Leadership at Weill Cornell Medicine. The Foundation did not suggest the topic or participate in the research or the writing of the manuscript.Disclosures: Disclosures can be viewed at www.acponline.org/authors/icmje/ConflictOfInterestForms.do?msNum=M18-2363.Corresponding Author: Lawrence P. Casalino, MD, PhD, Livingston Farrand Professor of Public Health, Chief, Division of Health Policy and Economics, Department of Healthcare Policy and Research, Weill Cornell Medicine/New York Presbyterian Hospital, 402 East 67th Street, Room LA 217, New York, NY 10065-6304; e-mail, [email protected]cornell.edu.Current Author Addresses: Dr. Casalino and Ms. O'Donnell: Department of Healthcare Policy and Research, Weill Cornell Medicine/New York Presbyterian Hospital, 402 East 67th Street, Room LA 217, New York, NY 10065-6304.Dr. Saiani: New York Presbyterian Hospital, 525 East 65th Street, New York, NY 10065.Mr. Bhidya and Dr. Khullar: Weill Cornell Medicine, Department of Healthcare Policy and Research, Weill Cornell Medicine/New York Presbyterian Hospital, 402 East 67th Street, New York, NY 10065-6304.Author Contributions: Conception and design: L.P. Casalino, R. Saiani, D. Khullar, E. O'Donnell.Analysis and interpretation of the data: L.P. Casalino, R. Saiani, S. Bhidya, D. Khullar, E. O'Donnell.Drafting of the article: L.P. Casalino, R. Saiani, S. Bhidya, D. Khullar, E. O'Donnell.Critical revision of the article for important intellectual content: R. Saiani, D. Khullar.Final approval of the article: L.P. Casalino, R. Saiani, S. Bhidya, D. Khullar, E. O'Donnell.Provision of study materials or patients: E. O'Donnell.Statistical expertise: S. Bhidya.Obtaining of funding: L.P. Casalino.Administrative, technical, or logistic support: S. Bhidya, E. O'Donnell.Collection and assembly of data: L.P. Casalino, R. Saiani, S. Bhidya, D. Khullar, E. O'Donnell.This article was published at Annals.org on 8 January 2019. PreviousarticleNextarticle Advertisement FiguresReferencesRelatedDetailsSee AlsoPrivate Equity Acquisition of Physician Practices Lawrence P. Casalino , Rayhan Saiani , Sami Bhidya , Dhruv Khullar , and Eloise O'Donnell Private Equity Acquisition of Physician Practices Sailesh Konda , Joseph Francis , Kiran Motaparthi , and Jane M. 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Grant-Kels, MD 15 January 2019Volume 170, Issue 2Page: 114-115KeywordsDatabasesDermatologyDisclosureHealth careHealth care policyHealth economicsHealth services researchHospital medicinePublic policyUrology ePublished: 8 January 2019 Issue Published: 15 January 2019 Copyright & PermissionsCopyright © 2019 by American College of Physicians. All Rights Reserved.PDF downloadLoading ...