“Investors are putting faith in the idea that the market is headed toward shared-savings payment models. They’re placing their bets to get in on the ground floor,” the publication reports.
“The long-term opportunity for private-equity firms is the ability to sell these managed-care-savvy medical groups to insurers or health systems, which may pay a premium for the care-coordination expertise and data analytics these practices offer.”
“Still, many systems have yet to see a return on their investment in buying physician practices. Employing physicians means they need to pay hefty salaries and benefits, as well as the overhead costs associated with office-based practices. ”
