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Opinions differ on private equity in ophthalmology
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WAILEA, Hawaii — As part of a panel moderated by Candace S. Simerson, FASOA, COE, CMPE, Richard L. Lindstrom, MD, and Kevin Corcoran, COE, CPC, CPMA, FNAO, presented evidence as to whether private equity is a proper fit for ophthalmology.
“[Private equity firms] are interested in a specialty that is like ours with third-party cash pay, growth opportunities, and specialties that are likely not acquired by large hospital chains,” Lindstrom said here at Hawaiian Eye 2018.
He noted private equity are interested in specialties such as dermatology, ophthalmology, optometry, dentistry and aesthetic plastic surgery.
“Private equity companies are very talented investment specialists,” he said.
The independent practicing doctors is where the opportunity is, he added. Which is why they like ophthalmology, optometry and plastic surgery, he said.
“We are independent of the dependency on a hospital,” Lindstrom said.
Lindstrom, who is Founder of Minnesota Eye Consultants, and the practice partnered with Waud Capital Partners in Chicago and created United Vision Partners, and noting this decision his younger partners saw tremendous upside in this move.
Corcoran said private equity in ophthalmology should depend more on the needs and wants of a particular practice.
“I think the answer to this question is both yes and no. It depends on who you are and what you want. The U.S. is not a homogenous country, you have to look inside your culture and your practice,” Corcoran said.
Additionally, owners should consider how old the doctors and practitioners are and what they want. Lastly, he recommends considering the vision for the practice.
“Those answers are not homogenous and the answers are all over the place,” he said. “Do you even have a plan and how far into the future is it?”
“That isn’t an easy question to answer and I think the answers are all individual,” Corcoran said.
Data collected during the question and answer portion of this panel made it clear that private equity is on the minds of Hawaiian Eye 2018 attendees. Of the respondents, 45% reported that they had been approached by private equity. The driving factors for physician motivation to do a private equity deal was to monetize equity for physician owners (44%) and to manage succession planning (29%). – by Abigail Sutton
Reference:
Simerson CS, et al. The Changing Ophthalmic Practice Environment. Presented at: Hawaiian Eye; Jan. 13-19, 2018; Wailea, Hawaii.
Disclosure: Lindstrom reports royalty fees from Bausch + Lomb; consulting fees from AcuFocus, Abbott Medical Optics, Alcon Laboratories, Advanced Refractive Technologies, Alphaeon, Argoshield, Aviana, Bausch + Lomb, Belkin Laser, Broadspot, Checked-Up, Clarity Ophthalmics, Clear Sight, CXL, ESI, Dose, EBV Partners, Elenza, Equinox, E-Vision Photography, Eyemaginations Inc., and Flying L Ventures; is an investor in AcuFocus Inc, Abbott Medical Optics, Alphaeon, Argoshield, Augustine Temperature Management, Aviana, Bausch + Lomb, Belkin Laser, Biosyntrx, Bruder, Checked-up, Clarity Ophthalmics, Clear Sight, Confluence Acquisition Partners Inc., CXL, ESI, dose, EBV Partners, Egg Basket Ventures, Egg Factory, Elenza, Equinox, E-Vision, E-Vision Medical Devices, E-Vision Photography, Excel-Lens Inc., Eyemagination and Flying L Ventures; and is on the board of Alphaeon, Aviana, Belkin Laser, Equinox and Flying L Ventures. Corcoran receives consulting fees from Corcoran Consulting Group. Simerson receives consulting fees from Alcon, Precision Eye Services and is on the speakers bureau for Omeros.