Young ophthalmologists have a lot to consider before joining private equity
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Key takeaways:
- Private equity is creating uncertainty for physicians in their 30s and 40s.
- Physicians should read through contracts with legal counsel before joining private equity.
Physicians have a lot to consider before deciding to join a private equity practice, according to a speaker at Real World Ophthalmology.
Shanika Esparaz, MD, said when she was applying for jobs in 2017, private equity (PE) was not on her radar, but it has changed the job landscape for young ophthalmologists in the last few years.
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“All PE companies are different and operate differently just like private practice groups do,” she said. “I would really encourage anyone who’s considering a private practice or a private equity job to really do their homework, network with colleagues and go in with an open mind.”
Esparaz said private equity is a hot topic in medicine with a lot of passionate voices on both sides. While opponents of private equity see it as an enterprise that puts making money over patients, proponents see it as a way to boost capital, improve administrative support and gain insurance negotiating power, Esparaz said.
When considering a job offer for private equity, Esparaz said physicians need to balance the pros and cons.
“That might be that you’re going to be an employee, you’re going to focus on patient care, you have your W-2 benefits, and you get lots of procedures and surgeries,” she said. “The cons, on the other hand, are that you don’t have ownership, and perhaps there is more red tape if you want to employ newer technologies or have creative ways of practicing. There is concern that there is less autonomy.”
The decision might come down to what each physician values, whether that is a better work-life balance or more entrepreneurial ventures, Esparaz said.
Before making any decision, Esparaz said it is important to read over the contract with an attorney to better understand the fine print.
“Those of us young ophthalmologists, and those of us in our 30s to 40s, are kind of in the sandwich generation with PE buyouts,” Esparaz said. “There is an uncertainty, certainly in our lifetime and our careers, but we’re used to this in medicine.”
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Esparaz S. Thinking about joining private equity? Here is what to consider. Presented at: Real World Ophthalmology; April 15, 2023 (virtual meeting).
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