Gary Herschman Quoted in Crain’s Detroit Business on the Topic of Private Equity Investment in Physician PracticesCrain's Detroit Business September 3, 2019
Gary W. Herschman, Member of the Firm in the Health Care & Life Sciences practice, in the firm’s Newark office, was quoted in Crain’s Detroit Business, in “Specialty Physician Groups Attracting Private Equity Investment,” by Harris Meyer.
Following is an excerpt:
The rapid proliferation of private equity deals has raised alarms about whether investor ownership of physician practices will affect healthcare costs and quality. …
Buyers and sellers say they’re acutely aware of the disastrous experience with the wave of investor-owned physician management companies in the 1990s. A number of those companies, along with the physician practices they acquired, went bankrupt. Some have called those ventures Ponzi schemes.
But today’s environment and deals are sharply different from the ‘90s in key ways, private equity investors and consultants say. “Everyone is positioning for value-based payment initiatives and population health, and smaller medical groups see they need capital and expertise to succeed in that,” said Gary Herschman, an attorney at Epstein Becker & Green who advises clients in these transactions.