Mahdi Attya’s Post

Navigating new frontiers: the role of private equity in shaping healthcare's future Private equity's surge in healthcare, from 16% of healthcare provider transactions in 2013 to 25% in 2023, highlights its transformative role and potential for strategic growth. This trend raises critical discussions about the impact on patient care versus profit motives. With private equity driving consolidation for efficiency and improved care, the sector faces regulatory scrutiny over its investment approach. As we navigate this evolving landscape, balancing financial goals with healthcare quality becomes paramount, urging a shift towards investments that enhance patient outcomes. Can private equity reshape healthcare for the better? Discover the transformative role of private investment in driving innovation, efficiency, and patient care amid growing challenges and regulatory scrutiny in our latest article on this topic: https://ankura.co/3y7ksbP #HealthcareInvestment #PrivateEquity #FutureOfHealthcare

Is Private Equity eyeing your business? Check out this article. Four hot topics included, and much more: 1. Corporate investors will likely prioritize deals that involve healthcare information technology and other administrative support services over physician practices, industry observers said. 2. PitchBook analysts said in November that private equity-linked healthcare deal volume would drop 15% in 2024 compared with 2023. 3. Healthcare IT, specialty pharmacy management, revenue cycle management, clinical workflow software and other administrative support services are expected to draw private equity investment. 4. Investors will target some ambulatory care operators such as infusion centers, surgery centers and outpatient mental health providers. Interested in learning the inside scoop on PE in healthcare? DM me. Let's chat. #PrivateEquityinHealthcare #PEBackedDoctorOwnedPractices #HealthcarePRAgency

In the last decade and a half, private equity ("PE") has invested almost $1 trillion which equates to over 13% of healthcare in the US. This shift from the traditional full ownership by physicians or hospital employment models have garnered scrutiny, leading to governmental challenges and negative perceptions developing amongst healthcare providers. However, many have overlooked the benefits of PEs in healthcare, including management efficiencies, scaling and more capital for growth and innovation. Also, there has been studies demonstrating private equity-backed physicians cost Medicare less than those affiliated with hospitals. One study by Avalere and the American Independent Medical Practice showed expenditures in private equity-affiliated practices were, on average, 9.8% lower than those in hospital-affiliated practices in 2022. https://lnkd.in/dP2niQHM

Did you know that private equity investors spent more than $200 billion on healthcare acquisitions in 2021 alone, and $1 trillion over the span of a decade? Private equity firms have been increasingly acquiring U.S. physician practices across a number of physician specialties since 2012, increasing from 75 deals in 2012 to 484 deals in 2021, or more than six-fold increase in only 10 years. In 28% of metropolitan statistical areas (MSAs), a single private equity firm has more than 30% market share by full-time-equivalent physicians, and in 13% of MSAs, the single private equity firm market share exceeds 50%. #healthcare #medicine #physicians #doctors #privateequity

👁️🗨️ ICYMI check out this feature in HIT Consultant Media that highlights our client, Greg Hagood, President of SOLIC Capital Advisors. Greg discusses the challenges currently facing private equity in the healthcare industry. Read it here: https://bit.ly/49vuqT4 #healthcare #investments #clientnews #privateequity

Is private equity’s crush on healthcare provider groups over? Maybe they’re just not that into some of you anymore. A breakup would be a good thing for patients and physicians. Pitchbook continues to hold firm on its previous prediction that private equity investment in healthcare providers is poised for a comeback. The evidence, including Q3 activity, suggests otherwise. Right now, PE is toying with medspas and outpatient mental healthcare services, but it will be a brief romance and they’ll move on. They fell out of lust with provider groups leveraged in Medicare Advantage and value-based care financial models, but they’ll come courting again if the new administration pushes for more privatized management of Medicare and less for CMS, as many predict. You see, PE is a fickle lover. PE will woo you, promise you the moon… …and once you’ve said yes… PE will pick your pocket, charge your credit card to the max, and kick you to the curb loaded with debt. They’ll tell you they’re your white knight, sitting high on their steed in shining armor. They’ll be your protector and hero to keep you from going under or selling at a loss. But they don’t want you to lift the visor on their helmet, at least not till you’ve accepted their proposal, because it will scare and scar you to your core. Why am I so worked up about this? You could argue that I have no direct stake in private equity and you’d be technically correct. I’m not a PE investor or shareholder and I haven’t personally taken a financial hit from being part of a PE acquisition. So why am I so worked up about this? I’ll tell you why. In healthcare, the jilted lover is the provider group. But the biggest losers are patients. And we are all patients at one time or another. So yeah, I have skin in this game. So do you. https://lnkd.in/ggKV93wx #private equity #healthcare #patientslose

Explore our blog: "Demystifying Private Equity Partnerships in Healthcare" Discover: - The growth of private equity in healthcare - Top specialties attracting private equity - Benefits & risks for medical practices - The future of private equity in medicine Read more: https://lnkd.in/grj8AJxw #PrivateEquity #HealthcareInvestment #FutureOfMedicine

I always look forward to the Annual Healthcare Report inside of D CEO magazine and count Will Maddox as a friend and valuable contact in this space. He asked me recently to comment on the emergence of private equity in the healthcare space and this is the article that was published late last week/early this week. It is clearly an important topic that is only gaining steam as the importance of scale increases when dealing with anyone inside of this vertical; healthcare systems, payors, vendors, etc. I feel strongly that there may be an opportunity for PE to help independent medicine stay independent, but it will not happen without significant discussions and without an element of trust from all parties. #Libertatem Patient Physician Network #Independence https://lnkd.in/gQFJyd_8

Check out this article by one of our Founding Partners: Private Equity (PE) funds often invest in medical practices through MSOs, a model that has recently faced criticism in several states. Structuring PE-owned MSOs as Benefit Corporations may help to mitigate concerns. Learn more here: #Healthcare #MSO #PrivateEquity

This is actually troubling. While it's easy to make private equity out to be a bad actor within our flawed health system, let's keep in mind that, just like with any other group, there are good actors and bad ones. Moreover, at the end of the day, private equity is just a financing mechanism. Have there been some wrongs? I won't even try to dispute that. But private equity investment has also driven many of the advancements in technology, value-based, and consumer health care that make our lives and health care better. I know of many "good actors" in private equity. Without private equity, we would lose access to critical capital to maintain and improve our health system. As usual, Pitchbook's assessment of the marketplace closely aligns to what I've observed in my practice, especially its note around the uptick in health IT and specialty pharmacy.