Gary W. Herschman, Member of the Firm in the Health Care & Life Sciences practice, in the firm’s Newark office, was quoted in Modern Healthcare, in “Study: Private Equity Linked to Higher Anesthesia Costs,” by Max Abrams. (Read the full version – subscription required.)
Following is an excerpt:
Anesthesia is administered over 100 million times annually and carries a high profit margin, presenting an easy target for corporate investment. ...
Anesthesia providers are also a fragmented, less efficient hospital-based specialty, which makes it a prime target for consolidation, according to Gary Herschman, an attorney at Epstein Becker & Green. Corporate investors are eager to pool specialists and build in-house rosters of doctors, giving private equity networks a competitive edge in the industry.
"A larger organization with a seasoned corporate infrastructure with substantial access to capital to compete [and] to grow is becoming more and more important, and there's a lot of advantages to being part of a larger organization," Herschman said. "I think bigger is better, and that's what we are seeing — that we need to get bigger to be able to compete and have capital to invest in growth."
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