Breaking Down PE’s Push into Orthopedics
Drawing on data from the PitchBook Platform, Specialty Networks Consulting explores the push of Private Equities into Orthopedics.
A few key points:
- Orthopedic surgeons, who have historically scowled at PE, are starting to soften toward PE opportunities as macro trends threaten to cut into their profit through bundled payments, medicare cuts and lower overall payor reimbursement rates.
- The creation of scale and infrastructure in present day orthopedic groups can be expensive and may come out of the partner physician’s pockets or revenues upfront versus being deferred over a long period of time.