It’s generally perceived that robust investment is a sign of good health for a marketplace. And certainly if you’re an urgent care operator it’s good news when private equity ponies up funding to fuel your growth. A report just published by MedCity News raises the question of whether it as healthy for patients and the overall U.S. healthcare system, however. The concern, according to the article, is that PE could push to reduce costs by cutting staff and minimizing expenditures while promoting costly procedures that would raise spending on healthcare (counter to one of urgent care’s core attributes). It also quotes analysts who suggest that “the urgent care industry should be wary about this increasing private equity ownership.” While clearly it’s essential to consider the ramifications of every deal, regardless of who the potential partner may be, it’s also important to remember that the dynamics of owning and running an urgent care center are distinct. So, we encourage you to read a bit more about the prospects of working with PE from an equally distinctive urgent care perspective. Two articles in our archive, Why Private Equity and Other ‘Smart Money’ Is Bullish on Brick-and-Mortar Urgent Care and How Does a Private Equity Buyer View the Future Landscape of Urgent Care? would be a good place to start.
A New Report Poses the Question of Whether Private Equity Money Is Good for Urgent Care