4 key takeaways from new Journal of the American College of Cardiology research:
1. Overall, from January 2013 to September 2023, PE firms or PE-backed physician management groups acquired 41 outpatient cardiology practices. This corresponded to a total of 342 outpatient cardiology clinics. Many clinics were acquired multiple times, the authors noted, which is fairly common on the world of PE investments and acquisitions.
“It is concerning that nearly one in four PE-acquired cardiology clinic sites were acquired more than once over the 10-year study period,” the authors wrote. “This is a known strategy employed by PE firms, who favor short-term investments over three- to seven-year time periods. Shorter investment timelines incentivize changes that maximize profits quickly, but may not increase quality—such as charging higher prices, increasing patient volume and replacing physicians with advanced practice providers—all of which have been observed in other specialties.”
2. A majority (94.7%) of acquisitions occurred from 2021 to 2023.
3. Twenty different states have been home to cardiology clinics acquired by PE. Florida, with its massive number of healthcare providers and aging population, was the state with the most (60) PE acquisitions over the course of the study. Texas and Arizona were Nos. 2 and 3 with 53 and 33 acquisitions, respectively.
4. Cardiology clinics in wealthier communities were much more likely to be acquired with PE investments than those located in more high-poverty communities.
“As the number of cardiology acquisitions by PE increases it will be critical to monitor the effects on procedural utilization, quality and outcomes for patients with cardiovascular disease,” the authors concluded.