Private equity involvement in gastroenterology is skyrocketing, with groups such as Miami-based Gastro Health adding four practices in Ohio and Central and Southern Florida in the past three months.
Rami Abbass, MD, a gastroenterologist at University Hospitals in Mentor, Ohio, joined Becker’s to discuss what gastroenterology practices should consider when weighing the pros and cons of private equity investment.
Editor’s note: This response was lightly edited for clarity and brevity.
Dr. Rami Abbass: The current most controversial trend in gastroenterology is the growing role of private equity in the acquisition of practices. 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. The growing regulatory environment, high cost of capital, administrative burdens and challenges of partner recruitment have made private equity attractive to some practices.