GI professional fees increase following private equity acquisition: Study

Private equity is playing an increasingly large role in healthcare specialties nationwide, including gastroenterology. 

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Major private equity-backed GI groups include GI Alliance, Gastro Health and United Digestive, which jointly employ more than 1,000 physicians. 

Private equity  also could be driving up professional fees and facility fees for GIs. 

A February study published in Health Affairs used ownership data on GI practices linked to commercial claims from 2015 to 2020 to study how private equity acquisitions affect the prices and volume of care relative to both health system-affiliated practices and independent practices.

After private equity acquisition, prices increased by $92 per claim, or 28.4%, driven by a 78.1% increase in professional fees. Facility fees did not exhibit a statistically significant change. Meanwhile, utilization also increased.

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