The study shows that private equity acquisitions in cardiology are on the rise

According to a study published in The New York Times, 342 heart clinics have been acquired by private equity firms over the past decade, with more than 94% of these acquisitions occurring between 2021 and 2023. Journal of the American College of Cardiology and presented at the AcademyHealth 2024 Annual Research Meeting in Baltimore.

As this practice evolves, the study highlights the urgent need to monitor the impact of private equity acquisitions on the quality of care and outcomes of cardiovascular disease patients, as well as on procedure utilization.

Private capital in healthcare occurs when a medical practice and service delivery sites are acquired through pooled investments from multiple sources, including individual and institutional investors, pension funds, foundations, etc., with the intention of streamlining operations, financially supporting innovation and technology , increasing growth through additional acquisitions and ultimately increasing profitability.

“Policymakers and clinicians have expressed concern about the growing presence of private capital in other medical specialties. Although cardiology is an attractive target for private equity firms, little is known about the number and types of practices that are being acquired,” said senior author Rishi K. Wadhera, MD, MPP, MPhil, a cardiologist at Beth Israel Deaconess Medical Center and an associate professor at Harvard Medical School in Boston.

“Private capital acquisitions in other specialties have been shown to reduce quality and increase costs, so understanding the impact on cardiology is key.”

Researchers found that between January 2013 and September 2023, private equity firms acquired 41 outpatient cardiology practices, representing 342 clinical sites. The annual number of dispensary locations acquired increased from zero in 2013 to 215 in 2023, of which 324 occurred between 2021 and 2023 and 64 of them were acquired more than once.

Foreclosures occurred in 20 states, with the highest number occurring in Florida, followed by Texas and Arizona. The study also found that foreclosures tended to be highly concentrated in the same areas, with communities with the highest levels of poverty being less likely to experience foreclosures than the wealthiest communities.

In an accompanying editorial, former ACC President Edward Fry, MD, MACC, said it is equally important to understand what motivates 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 care administrators, policymakers, and society must define the elements of clinical practice that encourage more cardiologists to seek alternative employment models. Addressing them will be necessary to truly transform care and promote equity and value.”