Why Private Equity in Healthcare is Receiving Closer Scrutiny by Journalists and Government

AOP Response: We are acutely aware of the downside of private equity in healthcare. AOP does not rely on back-office economies of scale (which are minor) nor on leveraging higher fees from payors (which are difficult to achieve without reliable data backing up claims of superior clinical outcomes or reduced costs). Our core value to partner practices is to foster more rapid growth in terms of adding new physicians; establishing additional locations; adding new services, modalities, and equipment; purchasing or developing ASCs; bundling common procedures for employers; and proactively dealing with managed care. Our private equity partner (StonePoint) understands the challenges associated with PE well and has adopted a long-term view of our performance.