Gary Herschman and Epstein Becker Green Event Featured in “Physician Practices Increasingly Turn to Private Equity for Capital”

Crain’s New York Business

Gary W. Herschman, Member of the Firm in the Health Care & Life Sciences practice, and the firm’s Physician Group Strategic Transactions on the Rise health care conference were featured in Crain’s New York Business, in “Physician Practices Increasingly Turn to Private Equity for Capital,” by Jonathan LaMantia.

Following is an excerpt:

There were 45 physician practice transactions that were announced or closed in the first quarter, which is on pace to surpass the 181 deals reported last year, according to an analysis published in Bloomberg Law.

Investors have previously shown interest in acquiring practices in ophthalmology, pain management, dermatology and dental. Now firms are scouting for deals in orthopedics, urology, gastroenterology, radiology and eye care, said Gary Herschman, an attorney at Epstein Becker & Green, who co-authored the analysis for Bloomberg Law.

Private-equity firms are able to fund physician practices despite New York's prohibition on the corporate practice of medicine because they typically acquire the group's management services organization.

"They don't technically own the medical group," Herschman said of the PE firms. "The doctors are still employed by a professional corporation that's owned by doctors. The doctors do the clinical decision-making."

The article also appeared in Modern Healthcare.