Private Equity Firms Increasingly Acquiring Cardiology Practices: Concerns About Impact on Costs and Quality of Care

Private Equity Firms Increasingly Targeting Cardiology Practices, Raising Concerns About Quality of Care and Costs

Private equity firms have been on a buying spree in the medical field, with cardiology practices becoming a prime target for acquisitions. A recent analysis revealed that between January 2013 and September 2023, 41 cardiology practices in the United States were purchased by private equity firms, totaling 342 clinic sites. The majority of these transactions occurred after 2021, with a focus on wealthy communities in the South and West, particularly in Florida, Texas, and Arizona.

The trend of private equity firms entering the healthcare sector has raised concerns about the potential impact on patient care and costs. Senior author Rishi Wadhera, MD, highlighted the financialization and corporatization of healthcare, noting that these firms aim to add value to a practice in a short time frame and then sell it for a profit. There is a worry that this profit-driven approach could lead to changes in care delivery that negatively affect patients.

Previous acquisitions in other medical specialties have been associated with reductions in staffing, increased costs, and decreased quality of care. With cardiology practices now in the crosshairs, experts are urging the cardiovascular community to closely monitor the effects of these acquisitions on patient care and clinician practices.

The study also found that some clinics were acquired multiple times by private equity firms, indicating a strategy of short-term investments that prioritize profit over quality of care. The clustering of acquisitions in wealthy areas has raised concerns about potential monopolies and price increases, diverting resources from underserved communities.

While the impact of private equity involvement in cardiology remains unclear, experts emphasize the need for ongoing monitoring and research to assess the effects on healthcare access, quality, costs, and outcomes. The cardiology community must stay vigilant and proactive in understanding and responding to the changing landscape of healthcare organization and delivery.

As private equity firms continue to target cardiology practices, there are calls for greater regulation and oversight to ensure that patient care remains a top priority. The long-term implications of this trend on clinical quality, access to care, and overall value in cardiology practice are still to be determined, but the need for transparency and accountability is paramount in safeguarding patient well-being.