In a timely commentary, Dr. Jane Zhu explores the evolving impact of private equity (PE) ownership in gastroenterology—a specialty now seeing over 1 in 8 practices under PE control. The piece reflects on new findings by Arnold et al., who examined colonoscopy pricing and quality following PE acquisitions in commercially insured settings.
Key insights:
Utilization Increases: PE-acquired practices saw more colonoscopies per physician and more unique patients—raising the question of whether PE drives patient volume or rides pre-existing trends.
Pricing Trends: PE ownership was associated with a 4.5% increase in colonoscopy prices—rising to 6.7% in markets with higher PE penetration. These increases, while smaller than in other studies (e.g., a 35.7% rise reported by Singh et al. across GI procedures), are consistent with a broader pattern of elevated costs after PE acquisition.