Two ASC leaders joined Becker’s to discuss their thoughts on private equity and ASCs.
Question: What are your thoughts on private equity’s investment in ASCs?
Editor’s note: These responses were edited lightly for brevity and clarity.
Leslie Jebson. Regional Administrator at Prisma Health (Greenville, S.C.): My thoughts are based on: What is the end game for an orthopedic practice or ASC to be engaged with private equity? My limited experience has been in some cases, a practice has received an infusion of capital and business acumen to help the practice grow and expand.
In other cases, the PE engagement has briefly enhanced the compensation of only the original equity members of the practice and not employed physicians. The visible benefits are limited, and the practice needs to either merge or be acquired by a hospital system.
Anthony Kalloo, MD. Gastroenterologist and Chair of Maimonides Medical Center’s Department of Medicine (New York City): This will continue to grow with unexpected partnerships as investors look to have diverse portfolios that have synergy. For example, it makes sense for endoscope manufacturers to invest in ASCs.
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