VIDEO: Private equity firms have a growing interest in primary care

CHICAGO — For years, private equity firms have targeted hospital-based physicians and office-based specialists, but their interest is now shifting toward primary care, according to Ryan Crowley, BSJ, senior associate for health policy at ACP.

During the ACP Internal Medicine Meeting, Crowley moderated a session that focused on private equity investment and integration and consolidation in health care.

Although private equity investment may be viewed as a way to gain capital, there are tradeoffs with physician autonomy, Crowley said. These tradeoffs include noncompete clauses, gag clauses and nonphysician employment.

“I think some of the cost and quality effects are still being understood,” Crowley told Healio. “Given that this is an accelerating trend in health care, we need to start researching it fast and provide oversight where needed to ensure that patients, physicians and the health care system as a whole isn’t harmed.”

Reference:

Crowley R, et al. The role of financial profit in medicine. Presented at: ACP Internal Medicine Meeting; April 28-30, 2022; Chicago.