Private equity has staked its claim in gastroenterology.
From GI Alliance to United Digestive, most major GI groups are backed by private equity. But what is drawing private equity to gastroenterology specifically?
“This trend has seen growing momentum in the past five years. The field presents an attractive PE target, as a significant portion of gastroenterologists remain in independent practices with ownership in ambulatory endoscopy centers,” Rami Abbass, MD, a gastroenterologist at University Hospitals in Mentor, Ohio, told Becker’s in 2021. “The growing regulatory environment, high cost of capital, administrative burdens and challenges of partner recruitment have made private equity attractive to some practices.”
Gastroenterology is the most-represented specialty among ASCs, making up 32 percent of all cases, according to VMG Health’s “Multi-Specialty ASC Benchmarking Study” for 2022. Gastroenterology also has high utilization of evaluation and management codes. It’s a popular specialty with lots of potential for growth, making it especially attractive for private equity.
Private equity has its eyes on gastroenterology. Here’s why. (Becker’s GI & Endoscopy)
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