Private Equity and Its Emergence in Orthopaedics. Issue 20 (15th October 2021)

• Record Type: Journal Article
• Authors: Patel, Alpesh A.; Fernandez, Claire; Mazmudar, Aditya
• Is Part Of: Journal of the American Academy of Orthopaedic Surgeons. Volume 29:Issue 20(2021)
• Publication Date: 2021-10-15
• Subjects: Orthopedics -- Periodicals; Orthopedic surgery -- Periodicals; Joint Diseases -- Periodicals; Orthopedics -- Periodicals; Orthopedic surgery; Orthopedics; Periodicals; 616.7005
• DOI: 10.5435/JAAOS-D-21-00058
• Languages: English
• ISSNs: 1067-151X

Abstract

Abstract : Private equity (PE) is increasing its role in healthcare financing and may be a source of strategic funding for orthopaedic practice groups. With acquisitions in other medical specialties such as dermatology and ophthalmology, PE works to increase operating efficiency and cut costs. Orthopaedic practices' access to revenue through ancillary services and ambulatory surgery centers, coupled with a growing, aging cohort, make them an attractive candidate for PE acquisition. However, careful consideration is warranted before surgeons enter these partnerships to ensure patient safety, and the quality of care is not compromised because PE works to increase the return on their investment.