Physicians Pushing Back Against Private Equity Firm Buyouts

May 15, 2023

Private equity firms are increasingly taking over small medical groups and nabbing hospital contracts in the process. To fight back against this growing trend, a group of providers formed the Association for Independent Medicine (AIM). AIM argues that practices like rolling smaller groups into larger companies or the sale-leaseback model are hurting providers and patients.

According to Deborah Abrams Kaplan, “Some private-equity firms use the sale-leaseback model, which involves selling an organization’s real estate and leasing it back to the organization. It may provide an infusion of cash from the sale, but real estate is often a healthcare organization’s biggest asset.“

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(Source: Managed Healthcare Executive, May 14th, 2023)

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