07/25/2023    Robert Kornfeld, DPM

Private Equity-Owned Practices

I have no idea how many DPMs are employed by a PE
owned practice, but I imagine it is slowly growing
in popularity, as it is among other specialties.
This article appeared on Medscape and is worth a
read:

Rising Patient Costs Tied to Private Equity
Ownership (medscape.com)

For the majority who are still owned and operated
privately, the challenges continue to pile up. Many
podiatrists have chosen direct care over the rigors
and stresses of insurance-dependency (as I did 23
years ago). But many have moved to, or are
considering, PE. The way I see it, if you do not
have autonomy in your practice, you are likely to
face contractual issues down the road. PE is not a
panacea. I know quite a few MDs who went that route
and are really sorry they did. That is not to say
that it won't work for some. But in a direct care
model, you are the Captain of the ship. You are in
charge, you make the decisions and you have 100%
autonomy since no insurance company can tell you
how to practice.

There are many benefits to free market medicine.
Studies have already shown that patients who go to
direct care doctors and only carry a catastrophic
plan (no commercial health insurance), will come
out way ahead financially and get more
comprehensive care in offices that are not overrun
with patients. This, in my opinion, is the best
next step until something better arrives.
Disempowering insurance companies will improve
patient access to care and eliminate the absurd
treatment guidelines designed to put more money in
their pockets while they exploit and abuse you for
their gain.

Clearly, the insurance-dependency system is ready
to crash and burn and it will take you with it if
you're not prepared. I think it's time to consider
alternatives to what isn't working or providing you
with a peaceful, positive professional experience.

Robert Kornfeld, DPM, NY, NY

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