DENVER, Sept. 25, 2018 /PRNewswire/ -- Nearly seventy percent of medical practices responding to a Clinic Service Corporation national survey have been approached by private equity firms hoping to buy them. CSC surveyed medical practices to learn about their experiences with, and attitudes toward, these purchases by private equity firms and hospital systems. A range of practices participated in the survey, from family medicine providers to anesthesiologists.
Of the seventy percent of owners approached by private equity, approximately three-fourths reported they ended up selling their practice to a private equity firm. When asked about their experiences with private equity firms and hospital systems, medical practice owners reported a variety of positive and negative impressions.
One respondent said working with a hospital system made them feel "proud," while another reported that the equity company that purchased their practice, "seemed they were just in for what they could get out the practice."
A leading concern reported by private practice owners is the perceived loss of control/autonomy. Others include specific complaints about the private equity firm or hospital system themselves.
"If the right company came along and they had the same goal, I might consider it," one respondent said, adding they would prefer to sell to a hospital system because "it would allow the practice to carry on after I retire with local control."
CSC's survey found 57 percent of respondents were approached by a hospital system. In general, survey respondents were more negative about hospital inquiries as opposed to those by private equity firms. Successful purchases by hospital systems occurred in about half the cases reported to CSC.
To increase validity of its survey, CSC is still inviting participants to complete their questionnaire. Participants are entered to win a $100 Amazon gift card.
Take the survey here: http://bit.ly/clinicsvc. Respondents must be either a manager, physician or nurse working in a medical practice.
About Clinic Service Corporation
Founded in 1974 as a medical billing company, Clinic Service has never strayed from its mission: to maximize the profit for physicians and medical practices. We focus on optimizing medical billing and coding processes to decrease the amount of time and effort required to maximize revenue. www.clinicservice.com.
SOURCE Clinic Service Corporation