The study examines the impact of private equity acquisitions on cardiology practice

Over the past decade, 342 cardiology clinics have been acquired by private equity companies, with more than 94% of those acquisitions occurring between 2021 and 2023, according to a study published today in the journal Private Equity. JACCthe flagship journal of the American College of Cardiology, and presented at the AcademyHealth 2024 Annual Research Meeting in Baltimore. As this practice evolves, the study underscores the urgent need to monitor the impact of private equity acquisitions on the quality of care and outcomes for cardiovascular patients, as well as on procedure utilization.

Private capital in healthcare occurs when a medical facility and its service providers are acquired through a combined investment from multiple sources, including individual and institutional investors, pension funds, foundations, etc., to improve operations, financial support for innovation and technology , increasing growth through additional acquisitions and ultimately increasing profitability.

Policymakers and clinicians have expressed concern about the growing presence of private equity funds in other medical specialties. Although cardiology is an attractive target for private equity firms, little is known about the number and types of practices being acquired. Private equity acquisitions in other specialties have been shown to reduce quality and increase costs, so it is critical to understand the impact on cardiology.”

Rishi K. Wadhera, MD, MPP, MPhil, senior author, cardiologist at Beth Israel Deaconess Medical Center and associate professor at Harvard Medical School in Boston

The researchers found that between January 2013 and September 2023, private equity firms acquired 41 outpatient cardiology practices, representing 342 clinical sites. The number of practice locations acquired per year increased from zero in 2013 to 215 in 2023, with 324 of those acquisitions occurring between 2021 and 2023, and 64 of those acquisitions were acquired more than once. The acquisitions occurred in 20 states; Florida had the most acquisitions, followed by Texas and Arizona. The study also found that acquisitions tended to cluster in the same areas, and that communities with the highest poverty were less likely to be acquired than the wealthiest.

In an accompanying editorial, former ACC president Dr. Edward Fry, MACC, said it was equally important to understand what drives cardiologists to acquire companies in these types of ventures.

“Is this just about money, or is the move to private equity a symptom of more fundamental problems with the current practice of medicine and cardiology?” he said. “Clinicians, health system administrators, policymakers and society need to define the elements of clinical practice that are driving more cardiologists to seek alternative employment models. Addressing these will be essential to truly transforming care and promoting equity and value.”