Private equity firms are struggling to find buyers for physician groups in the wake of increased oversight and financial pressure. Rising interest rates, lower evaluations and tougher regulations have scuttled potential private equity-led physician group deals. Healthcare attorneys say a softening sellers’ market has irked doctors, many of whom were promised a pay boost once private equity-backed management services organizations flipped a physician practice to another buyer. “There is some frustration from physician groups, saying they are getting squeezed,” said Thomas Hutchinson, a healthcare lawyer at the law firm Barnes & Thornburg who advises physician groups. “The plan was to grow these groups with a second flip, and that has been delayed.”
Read the full article: Why Private Equity-Linked Sales of Physician Groups Have Slowed //
Source: https://www.modernhealthcare.com/providers/private-equity-firms-physican-groups-mergers-buyouts