Do PE-backed physician practices do a better job getting the right patients?

Business of Healthcare

Gautam Shrikhande, MD, Chief Executive Officer of Pelvic Rehabilitation Medicine and Brian Rath, Partner, Lorient Capital join Business of Healthcare to explore the role of private equity in physician services.

Physicians want to serve patients with the highest value care at the best cost while being fairly compensated. Growth is a sign of a healthy, well-run practice. Ethical medical groups attract patients and increase revenue per patient by providing better outcomes, patient experience, and value as compared to local alternatives.

Some practices of these practices are choosing private equity to fund growth. As a source of capital, is private equity better at supporting growth? Does a practice taking PE investment run the risk of overly aggressive patient recruitment and billing? Do private equity partners help practices engage the right patients for growth?

We learn how one of these practices, PRM, partnered up with a PE firm to achieve velocity and growth. We look at the investment hypothesis, how they find the right patients for their services, how outcomes are measured and the role PE has with physician leaders.